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.