Software giant Aveva buys OSIsoft in $5bn mega-merger
Industrial software giant Aveva today said it has agreed to acquire US tech firm OSIsoft in a $5bn (£3.8bn) deal.
Aveva said the tie-up would bring together the two companies’ “complementary product offerings” in industrial software and data management.
The FTSE-listed firm said it will fund the takeover through a combination of rights issues and new debt.
The deal also comes as a boost to Softbank, which holds a minority stake in California-headquartered OSIsoft.
The Japanese conglomerate holds its stake through its $100bn Vision Fund.
OSIsoft, which has roughly 1,400 employees, specialises in real-time industrial data that allows customers to monitor conditions in laboratories and warehouses.
Aveva said the enlarged group would pull in revenue of roughly £1.2bn and earnings of around £330m.
Shares in Aveva were up 1.6 per cent in early trading.
“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,” said Aveva chief executive Craig Hayman.
“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.”
Dr J. Patrick Kennedy, who founded OSIsoft in 1980, will remain involved in the business in the newly-created role of chairman emeritus.
Aveva added that its biggest shareholder, Schneider Electric, had committed to vote in favour of the acquisition and take part in the rights issue.