The acquisition will expand Rockwell’s industrial cloud software offering
Plex Systems to be acquired by Rockwell Automation. (Credit: A Rockwell Automation Employee/Wikipedia.org)
Rockwell Automation has agreed to acquire Plex Systems, a Michigan-based provider of cloud-delivered smart manufacturing solutions, for $2.22bn in an all-cash deal.
Plex Systems provides a single-instance, multi-tenant SaaS manufacturing platform, which includes advanced manufacturing execution systems, quality, and supply chain management capabilities.
The company’s subscription-based platform enables manufacturers to connect, automate, monitor, and analyse all their business aspects to drive transformation.
It includes solutions for manufacturing execution (MES), enterprise resource planning (ERP), quality, planning and management of supply chain, Industrial Internet of Things (IIoT), and analytics for connecting people, machines, systems, and supply chains.
The company has more than 700 customers around the globe and is said to handle over eight billion transactions per day.
On the other hand, the Wisconsin-based Rockwell Automation is engaged in helping its customers in industrial automation and digital transformation.
Plex Systems CEO Bill Berutti said: “Joining forces with Rockwell is great for our customers, our partners, and our employees as we move to expand our reach and impact and accelerate our mission to bring manufacturing to the cloud.”
According to Rockwell Automation, the software capabilities of Plex Systems will be differentiated further by its complementary industry expertise, global market access, and ability in converting real-time data into actionable insights.
Rockwell Automation chairman and CEO Blake Moret said: “This acquisition will accelerate our strategy to bring the Connected Enterprise to life, driving faster time to value for our customers as they increasingly adopt cloud solutions to improve resilience, agility, and sustainability in their operations.
“Combining Plex’s cutting-edge cloud technology with Rockwell’s existing software portfolio and domain expertise will add customer value and create more ways to win. The acquisition will also accelerate our software revenue growth and strengthen our annual recurring revenue streams.”
Plex Systems will be reported under the software and control operating unit of Rockwell Automation, which offers hardware and software solutions for production automation and management systems.
As a part of the deal, more than 500 employees of the Michigan-based company will join Rockwell Automation.
The deal, which is subject to regulatory approval and other customary closing conditions, is anticipated to close in Rockwell Automation’s fiscal fourth quarter.