ServiceMax’s capabilities in field service management, which include managing all relevant data regarding serviced products such as serial number, service history, and product description, are expected to complement PTC’s entire digital thread portfolio
FSM software provider ServiceMax to be acquired by PTC. (Credit: PTC)
US-based software solutions provider PTC has agreed to acquire ServiceMax, a cloud-native, product-centric field service management (FSM) software provider, in an all-cash deal worth around $1.46bn.
ServiceMax is being acquired from an entity in which Silver Lake holds the majority stake.
Based in California, the asset-centric FSM provider offers cloud-native FSM capabilities built on the Salesforce platform.
Through the acquisition, PTC expects to bolster its closed-loop product lifecycle management offerings. This will be by expanding the digital thread of product information into FSM and downstream enterprise asset management capabilities, said the company.
PTC president and CEO Jim Heppelmann said: “The addition of ServiceMax will realize a key part of PTC’s closed-loop PLM strategy. The PLM capabilities PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration.
“ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and move into customer use.
“Upon completion of this acquisition, PTC will have the unique ability to complement the full digital product definition from our computer-aided design (CAD) and PLM solutions with detailed usage information from our internet of things (IoT) solutions and the complete service history from ServiceMax.”
The transaction will be funded in two stages, with $808m paid at the closing of the deal, and $650m due to be paid in October 2023.
Since 2015, PTC and ServiceMax have partnered to support manufacturers of highly configured and complex products for aerospace, industrial products, medical device, and related verticals.
ServiceMax’ FSM capabilities include managing all relevant data regarding serviced products such as serial number, service history, product description, and others. These enable creating and managing work orders, and scheduling and sending technicians.
PTC’s entire digital thread portfolio is expected to be complemented by ServiceMax’s FSM capabilities.
ServiceMax CEO Neil Barua said: “ServiceMax and PTC have a longstanding relationship rooted in the common profile of our customers, the natural synergies of our products, and a shared understanding of the importance of product data at different stages of the lifecycle.
“PTC has a strong and consistent track record of success, and now following the growth and innovation we’ve achieved during our partnership with Silver Lake, we’re excited for the ServiceMax team to strengthen the service offerings of PTC’s digital thread and closed-loop PLM portfolio.”
The transaction, which is subject to regulatory approvals and other conditions, is expected to close in early January 2023.