The agreement expands the existing partnership that has driven significant productivity across GE; adds new capability to offer in the $1 trillion market for industrial service
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Nov 15, 2016 • News • mergers and acquisition • GE • servicemax • Software and Apps • software and apps
The agreement expands the existing partnership that has driven significant productivity across GE; adds new capability to offer in the $1 trillion market for industrial service
GE Digital yesterday announced it has acquired ServiceMax, a leader in cloud-based field service management (FSM) solutions, for $915 million.
The acquisition provides GE Digital with enhanced capabilities to advance its Industrial Internet vision, enabling customers to immediately gain more value from their assets and find greater efficiency in their field service processes.
Service has always been a core part of GE’s strategy and capability and was an early target for the company’s work in analytics and productivity. GE has invested in the build out of digital twins for industrial assets. In addition the company has accelerated productivity improvements through digitizing service processes.
The ServiceMax product offering was an essential element to driving GE internal productivity. With this acquisition GE plans to add analytics and insights into the ServiceMax logistics, workforce optimization and deployment models. GE estimates there is a market-wide opportunity to improve service productivity by $25 billion through the use of analytical tools.
ServiceMax’s platform provides a full suite of applications, including inventory and parts logistics, scheduling and workforce optimization, and work order management.
As a result of this transaction, customers will be able to access these offerings from a modern rapid application development cloud and field-ready mobile platform that combines the strength of GE’s deep domain expertise and advanced industrial portfolio with ServiceMax’s field service expertise. The company plans to leverage the Predix platform to further the development of additional industrial applications focused on service delivery.
This acquisition builds upon our ongoing efforts to enhance our overall technology stack around the Predix platform and advance our Industrial Internet vision -Bill Ruh, CEO, GE Digital
The addition of ServiceMax’s complementary capabilities and highly-talented team better positions GE Digital to develop and accelerate the commercialization of Predix applications, delivering service products through a single, robust platform. This platform will address the service needs of enterprises across the entire service delivery process and provide the critical expertise and technologies needed to accelerate GE Digital’s existing services solution roadmaps. Coupled with the recent acquisition of Meridium, GE Digital will now provide a full suite of applications centered on driving comprehensive asset management for the Industrial Internet.
In addition, this transaction brings to GE Digital an immediate vertical customer base as well as significant recognition in the market and enhances GE Digital’s ability to commercialize its field services solutions. ServiceMax will have access to new verticals and will be able to utilize GE Digital’s scale and comprehensive Predix platform to enhance and strengthen their offerings for customers.
The transaction will help position ServiceMax to reach its next phase of growth by having access to GE’s broad and advanced industrial portfolio -Dave Yarnold, CEO, ServiceMax
Acquisitions are part of the GE Digital strategy to accelerate efforts in leading the Industrial Internet. The company will provide an update on their strategy and demonstrate progress at their flagship Minds and Machines event November 15-16 in San Francisco.
The acquisition of ServiceMax is expected to close in January, subject to customary closing conditions, including receipt of applicable regulatory approvals.
Morgan Stanley acted as exclusive financial advisor to ServiceMax with Gundersen Dettmer LLP serving as legal counsel for ServiceMax. King & Spalding, LLP served as legal counsel for GE Digital.
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Apr 21, 2015 • Hardware • News • mergers and acquisition • motion • Xplore
Xplore Technologies Corp a manufacturer of award-winning rugged tablet PCs, announced in the last few days that it has agreed to acquire substantially all of the assets of Motion Computing, Inc. and its subsidiaries Motion, another Austin, TX-based...
Xplore Technologies Corp a manufacturer of award-winning rugged tablet PCs, announced in the last few days that it has agreed to acquire substantially all of the assets of Motion Computing, Inc. and its subsidiaries Motion, another Austin, TX-based leader in the rugged tablet space, which is currently the second largest provider worldwide of rugged tablet PCs, according to VDC.
“The acquisition of Motion is consistent with our goal to establish the best and broadest line of rugged tablets for the enterprise market,” said Philip Sassower, chairman and CEO of Xplore.
“Motion represents a unique opportunity for Xplore to acquire an Austin-based company with deep industry domain expertise and that possesses products and channels complementary to our own. Together we will address a broader range of customer needs and provide a ‘one-stop shop’ for rugged tablets.”
“Nearly fifty percent of Motion revenue comes from outside the United States,” said Mark Holleran, president and COO of Xplore. “Leveraging the mature distribution channels that Motion has developed over the last 10 years, Xplore will significantly expand its international reach.
We are particularly excited to include in our offering Motion’s R12, which was recently named by PC Magazine as Editor’s Choice for Rugged Windows Tablet PC. Its 12.5” LCD form factor has been very successful in law enforcement and manufacturing markets and is just one example of the expanding market in which Xplore will now participate.”
[quote float="left"]We are particularly excited to include in our offering Motion’s R12, which was recently named by PC Magazine as Editor’s Choice for Rugged Windows Tablet PC.
“Motion is excited about what this combination brings to its customers and business partners,” said Peter Poulin, CEO of Motion. “The capital backing of Xplore supports a robust product pipeline and customer service capabilities that are critical to enterprises with whom Motion has had long standing relationships.”
“Xplore has a proven track record in focusing its resources to generate sustainable growth,” said Mike Rapisand, CFO of Xplore. “After a successful recapitalization and offering in 2012, we invested cash to significantly expand our addressable market, revenue and EBITDA.
Our executive management team has over 200 years’ combined experience in managing companies like Xplore and Motion, and we are confident that the two businesses will be successfully integrated to deliver growth and value to all of our stakeholders.”
The transaction will be effected through an asset purchase and sale agreement by and among Xplore, Motion and Square 1 Bank. Xplore will acquire Motion for approximately $9 million, plus the assumption of approximately $7 million in net liabilities.
The closing of the transaction is expected to occur on or about April 17, 2015 and is subject to numerous conditions, including the receipt of financing and third party approvals and the satisfaction of customary closing conditions. Xplore intends to consummate the transaction using proceeds from a new $15 million credit facility with Square 1 Bank and to support integration and growth of the two businesses with its cash on hand.
In its most recent fiscal year ended December 31, 2014, Motion’s unaudited revenue was approximately $83 million, its unaudited gross margin percentage was approximately 25% and its unaudited net loss was approximately $7 million. Xplore intends to file a current report on Form 8-K on or about June 30,
2015 that will include Motion financial statements, as well as historical pro forma financial information for the combined businesses.
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