GE Digital announced it has completed the acquisition of ServiceMax, a leader in cloud-based field service management (FSM) solutions, for $915 million. The acquisition provides GE Digital with new capabilities in the $1 trillion market for industrial service, enabling customers to immediately gain more value from their assets and find greater efficiency in their field service processes.
Predix is the only software platform that offers complete connectivity from the edge to the cloud and computing capabilities at every level of the industrial software stack. Combining Predix with ServiceMax technologies will help industrial customers accelerate productivity outcomes for industry by combining cloud-based mobile applications with Predix. This acquisition brings together the use of digital twins, cloud applications and big data analytics with world-class field services domain expertise to unlock asset productivity for industrial customers. With this acquisition, GE will add analytics and insights into the ServiceMax logistics, workforce optimization and deployment models.
The ServiceMax 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 will leverage the Predix platform to further the development of additional industrial applications focused on service delivery.
“This acquisition advances our vision of building a Predix-powered industrial world. Improved productivity is critical for industry, and digitizing field services is a cornerstone of a successful digital industrial strategy,” said Bill Ruh, CEO, GE Digital. “By combining our technologies with ServiceMax, we continue to enhance the overall Predix technology stack for our customers. This transaction, along with our previous acquisitions of Wurldtech, Meridium, BitStew and Wise.io, is directly aligned with our strategy to drive growth both inorganically and organically by building the capabilities to support the digital industrial transformation through Predix, APM and the Digital Thread.”
Together, the companies have already driven significant productivity for GE and going forward they will co-develop service products and accelerate commercialization in order to drive additional value for customers. GE estimates there is a market-wide opportunity to improve service productivity by $25 billion through the use of analytical tools.
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. The transaction closed on January 10.