Yes, tech companies do work on completion of deals up until the Christmas holidays.
Product Lifecycle Management (PLM) and Internet of Things (IoT) technology provider PTC announced yesterday its intent to acquire Kepware, a software development firm that provides communications connectivity in industrial automation environments. The acquisition prices is noted as approximately $100 million, plus up to an additional $18 million based on achievement of certain strategic initiatives and financial results.
Founded in 1995 and located in Portland, Maine, Kepware serves customers in more than 120 countries in industries such as manufacturing, oil and gas, building automation, power and utilities. The company’s flagship product, KEPServerEX, connects disparate devices and control systems, providing users with a single source of industrial data.
According to PTC, the acquisition will enhance PTC’s portfolio of Internet of Things (IoT) technology, and accelerate the company’s entry into the factory setting and Industrial IoT (IIoT). Kepware’s KEPServerEX will become a strategic component of the PTC ThingWorx® IoT technology platform. Upon integration of software platforms, PTC indicates that machine data will be able to be aggregated into the PTC ThingWorx platform and coupled with a wide array of internal and external information, and later analyzed using ThingWorx machine learning capabilities.
Over the past 12 months, privately-held Kepware generated approximately $20 million in revenues which implies that PTC was willing to pay a 5X premium to acquire this technology.
The transaction is expected to close in the early part of 2016, subject to customary closing conditions including regulatory approval. PTC indicates that it intends to maintain Kepware’s partner ecosystem.
From our Supply Chain Matters lens, that is an indication of more vertical software technology coverage for PTC which will place this firm in competition with other noted factory automation providers. As noted in our published 2016 Predictions for Industry and Global Supply Chains, readers can expect many other IoT M&A announcements in the coming year.