OSIsoft founder and CEO Dr. J. Patrick Kennedy added: “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners and employees. Dr J. Patrick Kennedy, 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. 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.”, Peter Herweck, Vice Chairman of AVEVA and Executive Vice President, Industrial Automation, Schneider Electric, said: “The combination of AVEVA and OSIsoft will accelerate our AVEVA partnership with significant customer value across process and hybrid automation industries plus the building and infrastructure sectors. LONDON, UK and SAN LEANDRO, California – 25th August 2020 – AVEVA, a global leader in industrial software, and OSIsoft, a global leader in real-time industrial data software and services, have announced an agreement for AVEVA to acquire OSIsoft for $5.0 billion. Lazard advised Aveva. Aveva has agreed to acquire OSIsoft, its SoftBank-backed US rival, ... Citi analysts said that although the Schneider merger had been successful, the new $5bn merger presented some risk. Together, AVEVA and OSIsoft can provide full-stack solutions that span edge, plant, and enterprise deployment models, strengthening AVEVA's position as a global leader in industrial software. OSIsoft’s PI System is used by its customers across 14,000 sites in 127 countries. OSISoft and AVEVA: Could this be the defining deal of the IIoT Era? Finally, of course, there’s AVEVA’s global scale and Schneider Electic connections: “AVEVA will be able to accelerate the market adoption and expansion of OSIsoft Cloud Services (OCS) and other cloud-based offerings, which recently entered into an early adopter program and provide OSIsoft’s industry leading data management capability in a native cloud environment”. AVEVA’s industrial software is a key element of Schneider Electric’s IoT-enabled architecture, EcoStruxure which will be further enhanced by OSIsoft’s PI System and its support for open infrastructure. British industrial software publisher Aveva, subsidiary of the French group Schneider Electric, announced on Tuesday that it had reached an agreement to buy its American competitor OSIsoft for 5 billion dollars. Peter Herweck, Vice Chairman of AVEVA and Executive Vice President, Industrial Automation, Schneider Electric, said: “The combination of AVEVA and OSIsoft will accelerate our AVEVA partnership with significant customer value across process and hybrid automation industries plus the building and infrastructure sectors. More after the press conference later today. Aveva will become Britain’s largest software group, after agreeing to the $5 billion, merger with the American based OSIsoft. Aveva AVV, -0.85% said it's buying OSIsoft for $5 billion in a mostly cash deal to expand its position in industrial software. AVEVA and OSIsoft Combine Accelerating Digital Transformation of Industrial World. The statement added: “Through OSIsoft’s PI System, customers draw insights, make better decisions, optimise operations, and drive digital transformation.” Notably it works with all of the Global Fortune Top 10 metals and mining companies. (Schneider Electric owns most of AVEVA.) Aveva combined with Schneider’s industrial software arm in 2018. 2 Claridge Court, Lower Kings Road OSIsoft is headquartered in California, USA, and has approximately 1,400 employees. Appears they were successful: AVEVA just announced that it has reached agreement on the terms of an acquisition of OSIsoft at an enterprise value of $5.0 billion. The deal is expected to close around the end of the calendar year. Required fields are marked *. Schneider Electric is committed to supporting customers with digital solutions for efficiency and sustainability.”, Dr J. Patrick Kennedy, 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. Learn how your comment data is processed. Finally, of course, there’s AVEVA’s global scale and Schneider Electic connections: “AVEVA will be able to accelerate the market adoption and expansion of OSIsoft Cloud Services (OCS) and other cloud-based offerings, which recently entered into an early adopter program and provide OSIsoft’s industry leading data management capability in a native cloud environment”. In addition, antitrust and other regulatory approvals must be sought. Lots more detail to come but here’s what we know now: So why do this? AVEVA believes that the acquisition will be accretive to earnings in AVEVA’s fiscal 2022, ending 31 March 2022. In all, AVEVA expects the deal to close near the end of 2020. Your email address will not be published. Commenting on the acquisition, Philip Aiken, Chairman of AVEVA, said: “I am delighted that we have reached agreement to acquire OSIsoft. Schneider Electric, a French industrial company, owns 60% of AVEVA and is unlikely to want to dilute its stake, since software is a key leg of its growth strategy. AVEVA has reached agreement to acquire OSIsoft, a pioneer and global leader in real-time industrial operational data software and services. AVEVA expertise in developing platform-independent software for the process industries could certainly be helpful in the area of interfaces, security, and cloud services. “OSIsoft’s PI System is a very scalable and robust enterprise level data historian platform, which will be a key enabler of a number of AVEVA solutions, in particular enhancing the Digital Twin, HMI/SCADA, Manufacturing Execution System and Asset Performance, with more inputs and connectivity to feed AI-infused and cloud-based solutions; AVEVA’s and OSIsoft’s solutions will combine to create a leading Industrial Internet of Things (IIoT) portfolio, which will continue to be platform and hardware agnostic, meaning that it will be able to communicate with diverse devices using different operating systems; the combined solution set will optimise engineering, operations and performance, with unprecedented efficiency and value as a result of the integration of both businesses; and AVEVA will be able to accelerate the market adoption and expansion of OSIsoft Cloud Services (OCS) and other cloud-based offerings, which recently entered into an early adopter program and provide OSIsoft’s industry leading data management capability in a native cloud environment.”, Completion is expected to occur around the end of the year. Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. Craig Hayman, Chief Executive of AVEVA, 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 is in turn 60% held indirectly by Schneider Electric. AVEVA, the industrial software company, announced on August 25, 2020, its intention to acquire OSIsoft from Dr. J. Patrick Kennedy and OSIsoft investors, including SoftBank, for $5 billion. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement as Chairman Emeritus and shareholder.”, International Mining In the twelve months ended 30 June 2020, OSIsoft had revenue of $488.5 million and Adjusted EBIT of $152.2 million”. Founded in 1980 by Dr J. Patrick Kennedy, OSIsoft is a global leader in real-time industrial data software and services. The acquisition is expected to close in late 2020 or early 2021. 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.”, Craig Hayman, Chief Executive of AVEVA, 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. Industrial software giant AVEVA has plans to grow OSIsoft's cloud-based Industrial IoT (IIOT) offering after agreeing a $5bn deal for the American firm. Part of French group Schneider Electric, Aveva said the purchase would allow the British company "to accelerate the market adoption and expansion of OSIsoft Cloud Services and other cloud-based offerings". Because you’ll ask, AVEVA shared this about OSIsoft’s revenue: revenue grew at a compound annual growth rate of around 10% from 2009-2019, and “this strong growth continued this year as the imperative for digital transformation has continued through the COVID-19 crisis, with year over year revenue growth of 10.0% in the six months ended 30 June 2020. Aveva, OSIsoft, software AVEVA Group PLC, a global leader in industrial software, announces that it has reached agreement on the terms of an acquisition of OSIsoft, at an enterprise value of $5.0 billion.AVEVA is in turn 60% held indirectly by Schneider Electric.. I am not sure what a rights issue is and how that creates cash separately from a share issue — will update once I know more about this. Kennedy’s Estudillo has a 50.3% stake in OSIsoft, while SoftBank holds 44.7% and the remaining is held by Mitsui & Co. Mitsui said it will sell its interest in OSIsoft for $250 million. This site uses Akismet to reduce spam. The British company said it would fund the deal using a combination of rights issues, cash on balance sheet and new debt, as well as issue shares to one of OSIsoft’s shareholders, Estudillo. AVEVA Group Plc, the British industrial software firm, has agreed to buy OSIsoft in a deal that gives the California-based company an enterprise value of $5 billion. AVEVA’s interest in OSIsoft is a testament to our talented team, and the extraordinary value of the PI System as the real-time streaming data infrastructure that powers the industrial world. AVEVA Group PLC, a global leader in industrial software, announces that it has reached agreement on the terms of an acquisition of OSIsoft, at an enterprise value of $5.0 billion. at an enterprise value of $5.0 billion. 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