British engineering and industrial software giant Aveva has bought California-based tech company Osisoft in a $5billion (£3.8billion) deal.
Aveva said it’s joining forces with the American business to accelerate the digital transformation in the industrial world.
Aveva chief executive Craig Hayman said: ‘The acquisition of Osisoft is perfectly in line with our strategic vision and it will accelerate the enlarged group’s role in the digitisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, cloud, data visualisation and artificial intelligence.
Aveva chief executive Craig Hayman says the deal will enable Aveva to broaden and deepen its relationships with existing and new clients
‘The acquisition will enable Aveva to broaden and deepen its relationships with existing and new customers and bring a more comprehensive product portfolio to market.’
Osisoft, which is backed by Softbank and specialises in in collecting and analysing data, has 1,400 employees and its systems are used on 14,000 sites in 127 different countries. It has a respectable list of customers on its books, including large oil companies, minoring companies and pharmaceuticals.
Aveva said that together both businesses would provide full-stack solutions that span edge, plant and etermprise deployment models, strengthening its position as a leader in industrial software.
Dr J Patrick Kennedy, founder and chief executive of Osisoft, said joining forces with Aveva enhances and extends the company’s ability to deliver on its key commitments
Combined, both Aveva and Osisoft, have 93 years of operating expertise and experience.
In the 12 months to June 30, Osisoft reported revenue of $488.5million dollars (£373 million) and adjusted earnings before interest and tax (Ebit) of $152.2million (£116 million).
Dr J Patrick Kennedy, the founder and chief executive of Osisoft, said: ‘Joining forces with Aveva enhances and extends our ability to deliver on our key commitments to our customers, partners and employees.
Kennedy added: ‘Together we will be better able to service the largest digital transformation projects in history.’
News of the deal comes after millions of employees worldwide moved to home working, as companies were forced to adapt to survive during the lockdown period.
In this UK lockdown was enforced in March this year and many companies scrambled to enhance their technology and ensure employees were comfortable to engage in home working.
The trend for home working is a boon to Aveva’s business model as the Cambridge-based software firm specialises in helping companies use technology to build and operate their businesses more efficiently and cost-effectively.