Aveva acquires OSIsoft for edge to enterprise IIoT data management in $5B deal

Aveva acquires OSIsoft for edge to enterprise IIoT data management in $5B deal

AVEVA and OSIsoft have announced an agreement for AVEVA to acquire OSIsoft for $5.0 billion. The companies 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 requirements for customers.

OSIsoft’s data management software will complement AVEVA’s end-to-end engineering, operations, and performance offerings and integrating OSIsoft’s PI System into AVEVA’s software portfolio will create an integrated data foundation that can drive big data, cloud and AI-driven insights to create meaningful business outcomes for customers. This combination enables AVEVA to grow and diversify the industries it serves as well as continue to expand its footprint in existing and new markets and geographies.

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. With a combined 93 years of operating expertise and experience, they share a history of meeting the rapidly changing and evolving needs of their industrial customers, built on foundations of customer centricity and world-class talent. In addition to sharing a complementary solutions portfolio, this transaction further validates AVEVA’s leading position in digitization and IIoT.

OSIsoft’s PI System enables customers to collect, normalize, store, and stream real-time, high-fidelity operational data to applications, analytics, and AI and ML platforms. PI System acts as a single system of record for operations data, designed for massive cloud-enabled scale and data sharing across enterprises, and enables insightful operations decision making. OSIsoft works with over 1,000 of the world’s leading power and utilities companies, 38 of the Global Fortune Top 40 oil and gas companies, all of the Global Fortune Top 10 metals and mining companies, 37 out of 50 of the world’s largest chemical and petrochemical companies and 9 out of 10 of the Global Fortune Top 10 pharmaceutical companies.

The complementary product offerings of AVEVA and OSIsoft will allow the combined company to continue to generate significant value for its stakeholders by creating new opportunities for innovation using new and emerging technologies. The two product suites are open and interoperable, and many customers leverage both solution sets today. As a combined entity, AVEVA and OSIsoft can further deliver on their sustainability goals, driving significant benefits and value for their customers. With broader, deeper scale and scope to lead the digital transformation of the industrial sector, the combined company will drive greater efficiencies and sustainability for many diverse essential industries, including consumer packaged goods (CPG), pharmaceutical, water and wastewater, and utilities, creating strengthened product offerings.

Analyst Perspective

The following is edited for length; the full version is posted on LinkedIn

“Why OSI Soft? We believe revenue synergies mainly justify the operation. The vast install base and brand recognition of OSIsoft will be used by AVEVA to explore upselling opportunities for the AVEVA in accounts where competitors are currently better positioned.

If we look at the high-level segmentation, we can quickly realize that the acquisition should allow AVEVA to strengthen its position in Chemicals, food and beverage, life sciences, and pharma, reducing its dependency on the “Oil and Gas” segment.

If we look at the acquisition from Schneider Electric’s perspective (Schneider Electric is a major shareholder of AVEVA), you can see the value more clearly. The PI system acting as a data shepherd between the OT and the IT domain is expected to play a critical role within the EcoStruxure value proposition across process, hybrid, building, data centers, and infrastructure sectors.”

Fabio Raffo, Associate Director for Industrial Software at Omdia

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