General Electric Digital, the General Electric industrial software division, has announced its acquisition of the ServiceMax, the field service management provider.
General Electric is not a stranger to the cloud-based management provider company as the former is amongst the ServiceMax investors.
It has also been its customer since 2010 and was one of the players to have participated in the $82 million funding round which took place last year.
GE is amongst the big customers of the Salesforce platform, which hosts the ServiceMax application and which also numbers in between the latter company’s early investors.
According to the General Electric Digital sales announcement, the deal is expected to close sometime in January and will see the acquisition of the ServiceMax provider for a $915 million value.
Dave Yarnold, the Service Max CEO confirmed the news and emphasized both of the companies’ orientation towards “servitization”.
He also pointed out the General Electric tendency and emphasis towards service revenues, which they also built, emphasis which was a contributing factor in the sealing of the deal.
Yarnold continued by explaining that the two companies have had a strong working relation ever since they first started collaborating back in 2010.
He stated that the relation was helped along by the GE’s visionary, though, and straightforward vision and alignment in terms of their relationship.
As a part of the General Electric Digital, ServiceMax will probably be accelerating both its global expansion plans and its product development.
It will also be joining in amongst the General Electric Digital asset performance management and Predix Internet of Things.
In September, General Electric made another acquisition which will help advance the asset performance management area. The acquisition targeted Meridium and came after a $495 million sale.
According to the aforementioned Yarnold, the company is looking forward to combining the asset performance management area with the Internet of Things domain.
He believes that such a mix will offer quite a number of opportunities, which he predicts the company will be seeking out over time and which will be quickened by the GE affiliation.
The General Electric Digital CEO, Bill Ruh, also released a statement in regards to the sale. In it, he revealed that the company was initially considering developing its own such division.
This would have given them the ability to digitize and automate servicing, but instead, the company decided to invest and buy ServiceMax.
The decision to acquire the existing service was made after taking into consideration the working relation and experiences with the company’s products.
According to Ruh, the acquisition will contribute to the enhancement efforts of the General Electric Digital.
The company has been trying to enhance the technology stack which surrounds its Predix platform. It has also been developing and advancing the company’s Industrial Internet vision.
He went on to state that a successful digital industry strategy will be based on the digitalization of field services. Just as an improved productivity will be vital for the Industrial Internet.
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