Global industrial software provider AVEVA has announced it is to acquire OSlsoft at an enterprise value of $5bn – in a deal that it expects will enhance its market position and add material scale and diversification across industries.
OSLsoft is headquarted in California and its PI System is widely used in diverse industries including energy, pharma and even by the federal government.
The acquisition of AVEVA is expected drive strong synergy including generating cross selling opportunities globally – including 41% in the Americas and 36% in EMEA.
“I am delighted that we have reached agreement to acquire OSIsoft. The acquisition has compelling strategic rationale with strong operational and financial benefits. The acquisition will strengthen AVEVA’s position as a global leader in industrial software, whilst a combination of the complementary product offerings of AVEVA and OSIsoft is expected to allow the Enlarged Group to accelerate growth and continue to generate significant shareholder value.“CEO, AVEVA
AVEVA also commented on the current trading environment – noting that it is showing robustness and in particular is seeing strong demand for cloud solutions. For the three months ending 30 June, revenue on a organic constant currency declined by 3.7%.
Shares in the £7bn-listed AVEVA edged up in the region of 3 percent upon opening of the markets.
The deal will be financed by a rights issue and new debt facilities.