Today’s announcement is the culmination of a thoughtful search for a respected organization that would mesh with our own strong mission- and … The integration of OSIsoft’s PI system data management software with AVEVA’s own operations and performance products will create an integrated data foundation that will drive big data insights to help customers. OSIsoft's founder and CEO J. Patrick Kennedy will be appointed to a newly established role of chairman emeritus, Aveva said. AVEVA has reached agreement to acquire OSIsoft, a pioneer and global leader in real-time industrial operational data software and services. Founded in 1980 by Dr. J. Patrick Kennedy, OSIsoft is a global leader in real-time industrial 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, … Furthermore, AVEVA can still offer equity to OSIsoft’s Kennedy to keep him personally invested in the combined firm. AVEVA has reached agreement on the terms of an acquisition of OSIsoft at an enterprise value of $5.0 billion. AVEVA has entered into an agreement to buy a SoftBank-backed US rival, OSIsoft, leading to one of the largest deals struck by a UK technology company. Schneider can readily participate in the offer of new equity as it has both €5 billion of cash and the headroom to raise more debt of its own. AVEVA & OSIsoft combine to accelerate the digital transformation of the industrial world. August 25, 2020. Learn More. AVEVA creates software that enables people to engineer, operate and maintain complex industrial assets safely, efficiently and cost-effectively. Alongside AVEVA, OSIsoft can begin to use its cutting-edge technology and multinational customer base to have a substantial effect on the industrial software market. This opens more doors for AVEVA to approach OSIsoft customers with AVEVA products and services. Aveva will become Britain’s largest software group, after agreeing to the $5 billion, merger with the American based OSIsoft. Today’s announcement is the culmination of a thoughtful search for a respected organization that would mesh with our own strong mission- and customer-driven culture. Mr. Kidd pointed out that OSI today largely sells perpetual licenses and maintenance agreements, with just a small proportion of revenue coming from subscriptions. Improving economic performance with remote workforce. To fund the rest of the proposed $5 billion deal, AVEVA considered offering stock, selling new equity, or both. The acquisition also has the promise of reducing competitive pressures on the combined firm in the long run, decreasing the net change in costs associated with undercutting rivals by the incumbent firm. “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners and employees. AVEVA GROUP PLC. The companies will combine to help customers in industrial and essential organizations accelerate their digital transformational strategies by driving greater efficiencies, lower costs, deeper data-driven insights, sustainability and business resilience. AVEVA Group plc (LON:AVV), 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.. “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners and employees. It is privately held. The acquisition will enable AVEVA to broaden and deepen its relationships with existing and new customers, generate significant value for shareholders, and bring a more comprehensive product portfolio to the market. and systems. There are two beneficial short-term consequences that emerge from AVEVA’s 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. In 2019, OSIsoft held $96.3M (£72.6M) in cash and cash equivalents and $1.26B (£0.95B) in total assets, while AVEVA held £127.8M in cash and £2.48B in total assets. AVEVA’s $5 Billion Acquisition of OSIsoft, "Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set." The acquisition of OSIsoft could put the new, larger AVEVA in better standing since it will combine their respective customer bases and their total assets. This transformative deal for AVEVA, strengthens our position as a global leader in … From a financial standpoint, this deal looks to benefit AVEVA greatly in the long run. Aveva has 4,600 employees across 54 locations and £766.60 M in annual revenue in FY 2019. The industrial sector, although a pioneer in exploring new technology, is the last to integrate and use its technology for its resources. 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. 1 FY2016-2019 CAGRs are shown according to ASC 605. “Aveva and OSIsoft will combine their complementary product offerings, bringing together industrial software and data management to help customers in industrial and essential organizations accelerate their digital transformational strategies as efficiency, flexibility, sustainability and resilience become increasingly urgent … It’s currently used by 9 out of 10 of the Global Fortune Top 10 pharmaceutical companies. Founded in 1980, headquartered in San Leandro, California. This will open up a wide range of streamlining and integration alongside AVEVA’s other products. Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments. That will lift net debt to a still respectable 1.9 times ebitda. Aveva is financing the deal with a $3.5bn rights issue, subscribed to by majority owner Schneider, plus $900m cash and debt. Ultimately, this deal sets the way for AVEVA to become a global pioneer in the field of industrial digitalisation. The interoperability of these two offerings is evidenced by the fact that there are many companies that make use of software from both AVEVA and OSIsoft, such as Adani Group. Autonomy’s sale to the US hardware giant embroiled both parties in a drawn-out court battle. The companies will combine to help customers in industrial and essential organizations accelerate their digital transformational strategies by driving great. AVEVA and OSIsoft will combine their complementary product … According to Aveva, the integration of OSIsoft’s PI System data management software with Aveva… The acquisition of OSIsoft could put the new, larger AVEVA in better standing since it will combine their respective customer bases and their total assets. Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments. In a $5 billion deal, engineering and industrial software company AVEVA has agreed to acquire OSIsoft, maker of the PI System, which is a market-leading operational data software solution. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement in my new role as the largest individual shareholder in the combined company and as Chairman Emeritus to ensure we realize the full benefits of this transaction.”  Dr. J. Patrick Kennedy, OSIsoft founder and CEO, “Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set. By: Sally Marshall, Izer Onadim, Valeriya Shreyber, Max Raso (Imperial College London), Zahra Malik, Devangini Vanalia and Deimante Chailenko (University of Manchester). Read White Paper. Aveva Group Plc is in advanced talks to acquire industrial software maker OSIsoft LLC for about $5 billion, according to people familiar with the matter. Britain’s record on tech deals is a sorry one. In addition, OSIsoft, as a mature business, requires substantial investment in order to expand operations into different market channels and revenue streams. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement in my new role as the largest individual shareholder in the combined company and as Chairman Emeritus to ensure we realize the full benefits of this transaction.”, Dr. J. Patrick Kennedy, OSIsoft founder and CEO, “Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set. The data collected and analysed by OSIsoft’s PI software could also be used by AVEVA to improve its other offerings. Aveva AVV, +2.28% said it's buying OSIsoft for $5 billion in a mostly cash deal to expand its position in industrial software. The deal “strengthens our position as a global leader in engineering and industrial software,” Aveva said in a statement. Its, "Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners, and employees. synopsis: UK-based AVEVA has reached an agreement to acquire OSIsoft, a pioneer and global leader in real-time industrial operational data software and services. In the twelve months ended 30 June 2020, OSIsoft had revenue of $488.5 million and Adjusted EBIT of $152.2 million1. On August 25, 2020,  we announced an agreement with AVEVA to join forces. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base which continues to make us leaders in our sector.” Craig Hayman, AVEVA CEO, San Leandro Tech Campus | 1600 Alvarado St. San Leandro, CA 94577. Being acquired by AVEVA allows them to enter a league all on their own where they can leverage their new parent company’s resources in a larger operational and sales network to outperform its competitors. AVEVA experts should work with OSIsoft development to support new enhancements and the volume of industrial data needed for the digital transformation. Firstly, the software portfolios offered by AVEVA and OSIsoft are complementary, with AVEVA providing product options focused on the design, implementation, and control of technical systems whilst OSIsoft offers software to optimise data collection from sensors and make use of collected data. 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. See insights on Aveva including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Aveva, one of Britain’s oldest technology groups, is set to raise £2.8bn in a rights issue to help fund the $5bn acquisition of OSIsoft, its SoftBank-backed US rival. Aveva is seeking to break the “winners’ curse” with a $5bn acquisition of SoftBank-backed OSIsoft. Welcome to the wearables era for monitoring human safety. H1 2019 and TTM to 30 June 2020 figures are shown according to ASC 606. 16 December 2020. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. The acquisition will strengthen its position in its current subsectors and add a stronger position in the pharmaceutical, food & beverage, and life sciences markets. Based on assumptions, AVEVA is unlikely to raise more than £1 billion pounds in debt since enterprise software companies can typically sustain debt representing only about double its EBITDA. Whilst organic revenue has been down in the first half of 2020 (likely due to its ongoing transition to a subscription-based model and the coronavirus pandemic), it is inevitable that this acquisition will aid its growth, with new investment helping to improve operations and assisting the company to continue dominating a sector with excellent gross margins. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. AVEVA and OSIsoft combine to accelerate digital transformation of the industrial world. The combination will bring together world-leading industrial software and real-time operational data software and services. See Appendix for details. Together we will be better able to service the largest digital transformation projects in history" - J. Patrick Kennedy, CEO of OSIsoft. 25.08.2020 14:24. Aveva Group PLC's agreed US$5bn acquisition of data management software firm OSIsoft has inspired UBS and Invetec to both upgrade to a ‘buy’ recommendation on the shares.. But that may be a factor its favour. form below and you'll receive in your inbox our awesome free sample. SoftBank gets to generate an approx. AVEVA Group PLC is a British multinational information technology company based in Cambridge, England; it started as the Computer-Aided Design Center. OSIsoft, LLC is a manufacturer of application software for real-time data management, called the PI System. AVEVA and OSIsoft will further deliver on their sustainability goals, driving significant benefits for their customers. AVEVA-Aktie springt an: AVEVA kauft OSIsoft für Milliardenbetrag - Finanzierung über Kapitalerhöhung. Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. The purchase of OSIsoft will provide full-stack end-to-end solutions and accelerate digital transformational strategies. Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. OSIsoft’s software has great potential. The deal is likely to be funded by a $3.5 billion rights issue, cash and new debt facilities. Software for a Sustainable Future. Secondly, the COVID-19 pandemic has put pressure on many companies that did not have large cash reserves. Both companies now sell operational data software and services to … In short, this is not a splashy tech deal. This exit produces a mammoth return for Dr. Kennedy, who still owned a majority of the company. This will not only help us serve existing customers better but also open the flood gates to new opportunities which will accelerate the delivery of our digitization vison. Health and Safety for Mining Industries. Aveva Group Plc has agreed to buy Osisoft in a deal that gives the SoftBank Group Corp.-backed industrial software maker an enterprise value of $5 billion. ... (EBITDA) von rund 330 Millionen Pfund im Jahr kommen. Founded in 1967, headquartered in Cambridge, England. Founded in 1980 by Dr. J. Patrick Kennedy, OSIsoft is in … The combination of AVEVA and OSIsoft will help customers in industrial and essential organizations accelerate their digital transformational strategies. 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. In 2019, OSIsoft held $96.3M (£72.6M) in cash and cash equivalents and $1.26B (£0.95B) in total assets, while AVEVA held £127.8M in cash and £2.48B in total assets. A big impetus for the transaction is to further diversify AVEVA away from its main market–oil and gas (from 40% to 25% of revenue). He said that “given AVEVA’s track record in the last couple of years [of transitioning customers to subscriptions], this is an area that we believe we can accelerate and help to create new subscription offerings, particularly using AVEVA Flex.”. 1.7x return, which is not too shabby for 3 years given the absolute dollars that the Fund was able to invest into OSIsoft. It’s currently used by 9 out of 10 of the Global Fortune Top 10 pharmaceutical companies. As part of this acquisition, Aveva will combine OSIsoft’s products with its own. AVEVA Buys OSIsoft for $5B. The funds and assets of the larger company provide some assurance and security to OSIsoft. We work with you … The deal looks to accelerate the convergence of industrial software applications with real-time operational data flows. Additionally, the acquisition of OSIsoft requires inventive financing. Aveva Group, the FTSE 100-listed software firm, said it intends to raise £2.84billion through a rights issue to part-fund the acquisition of SoftBank-backed rival OSIsoft.. ACQUISITION OF OSISOFT, LLC ('OSISOFT'): UPDATE RE CLEARANCES AND EXPECTED TIMETABLE TO CLOSING. The FIT with AVEVA … Micro Focus struggled with its $8.8bn reverse takeover of Hewlett Packard Enterprise’s unwanted software business. If the software stacks of the two companies can be integrated, this could make for a smooth end-to-end customer experience in which AVEVA provides software to be used at all stages of building infrastructure, from design to control to maintenance and optimisation. This will not only help us serve existing customers better but also open the flood gates to new opportunities which will accelerate the delivery of our digitization vison. 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. Please, in order to be able to read our free chapter, put your email in the 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. Therefore, this made offering OSIsoft’s owners stock in the new company less likely than a capital increase, where Schneider could buy new shares. - Craig Hayman, CEO of AVEVA, OSIsoft’s software has great potential. Aveva today cemented its position as a rare UK tech giant as it snapped up Softbank-backed industrial software group OSIsoft for $5 billion. The $5bn acquisition presents a range of risks and uncertainties, the greatest uncertainty being integration risk. Elements of this product are deployed at more than 20,000 sites worldwide and manage data flows from close to 2 billion real-time sensors. Learn More. Its PI System is the … Empower the Remote Workforce. The Board of AVEVA Group Plc ('AVEVA' or the 'Company') provides the following update on the progress of the proposed acquisition of OSIsoft. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base which continues to make us leaders in our sector.”, Letter from OSIsoft CEO Dr. J. Patrick Kennedy. The deal, expected to close at the end of 2020, will bring together Osisoft’s real-time industrial data software and Aveva’s end-to-end engineering, operations and performance offerings. AVEVA Group plc (LON:AVV), a global leader in engineering and industrial software, has provided an update on the debt financing relating to its proposed acquisition of OSIsoft announced on 25 August 2020.. Syndication of the £250 million revolving credit facility has now successfully completed with HSBC and Santander joining … efficiencies, lower costs, deeper data-driven insights, sustainability and business resilience. Today’s announcement is the culmination of a thoughtful search for a respected organization that would mesh with our own strong mission- and customer-driven culture. In particular, OSIsoft brings a large footprint in power that will help balance AVEVA’s overweighting in oil & gas. And as suspected, the company has a very healthy 30%+ EBITDA margin. Aveva, a supplier of industrial software and services, has agreed terms to acquire OSIsoft, a supplier of real-time industrial data software and services for $5 billion. AVEVA agrees to acquire OSIsoft. and systems. It is listed on the London Stock Exchange and is part of the FTSE 100 Index. Its PI System has incredible penetration in the industrial world. AVEVA grows its 2021 revenues by nearly 45% with immediately accretive EBIDTA, much of it due to recurring revenues.