PTC, a software developer focused on the digital side of product lifecycle management, Thursday said it has acquired ServiceMax, a developer of cloud-native field service management software, in a cash deal worth about $1.46 billion.
PTC’s proposed acquisition of ServiceMax, which in 2019 was sold by its parent company General Electric to private equity firm SilverLake, is subject to regulatory approval, and is slated to close in early January 2023.
ServiceMax is PTC’s second acquisition this the year, following its May purchase of Intland, developer of the Codebeamer application life-cycle management (ALM) cloud-ready software product suite.
For PTC, the ServiceMax acquisition is aimed at strengthening PTC’s closed-loop product lifecycle management offerings by extending the digital thread of product management into the company’s downstream enterprise asset management and field service management capabilities.ADVERTISEMENT
Closed-loop product lifecycle management, or closed-loop PLM, is a way to collect useful product information during the full lifecycle of the product and then extract knowledge from that information to better develop new product capabilities and improve business opportunities.
PTC did not respond to a CRN request for further information by press time.
However, PTC President and CEO Jim Heppelmann said in a statement that the acquisition of ServiceMax will be a key part of his company’s closed-loop PLM strategy.
“The PLM capabilities PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration. ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and move into customer use,” Heppelmann said.
Once the acquisition is completed, PTC will be able to complement the full digital product definition from computer-aided design (CAD) and PLM solutions with detailed use data from its IoT capabilities and the complete service history from ServiceMax, Heppelmann said.
“PTC is poised to be the only company that will be able to offer manufacturers this comprehensive view of their products at each stage of the lifecycle,” he said.
The relationship between ServiceMax and PTC is based on their common customer profiles, product synergies, and understanding of the importance of product data throughout the product lifecycle, said ServiceMax CEO Neil Barua in a statement.
“PTC has a strong and consistent track record of success, and now, following the growth and innovation we’ve achieved during our partnership with Silver Lake, we’re excited for the ServiceMax team to strengthen the service offerings of PTC’s digital thread and closed-loop PLM portfolio,” Barua said.
PTC earlier this month reported its fiscal year 2022 financials. For the year, which ended September 30, the company reported revenue of $1.93 billion, up 7 percent year over year. The company is expecting fiscal year 2023 revenue of $1.91 billion to $1.99 billion.
The purchase of PTC is slated to be paid in two stages, with $808 million to be paid on closing and $650 million to be paid in October of 2023. Funding will come from cash on hand, borrowing from an existing credit facility, and a new $500 million term loan.