GE Puts Digital Assets on the Block
July 30 2018 - 2:15PM
Dow Jones News
By Dana Cimilluca, Dana Mattioli and Thomas Gryta
General Electric Co. is seeking a buyer for key parts of its
digital business as the beleaguered industrial conglomerate unwinds
a signature initiative of former Chief Executive Jeff Immelt amid a
broader retrenchment.
The Boston-based company has hired an investment bank to run an
auction for the operations, which GE has poured billions of dollars
into, according to people familiar with the matter. It's not clear
what exactly is for sale and how much a deal could generate, should
there be one.
While the process is at an early stage, possible buyers include
software companies and other industrial players seeking to become
more digital-focused, one of the people said.
GE Digital, a much-touted software unit headquartered in San
Ramon, Calif., was key to the strategy of Mr. Immelt, who left last
summer. As part of an effort to reorient itself away from financial
and media assets and bolster a sluggish stock price, the company
built a software platform called Predix that aimed to help
industrial customers like utilities and airlines gather and analyze
data to better manage their equipment and wring out greater
efficiencies.
GE Digital was established as a standalone unit in 2015 to
distinguish it from the company's industrial divisions. In the fall
of 2016, GE paid $915 million to acquire ServiceMax, a Pleasanton,
Calif., company that makes apps for inventory management and
workforce scheduling. Executives predicted at the time that GE
would hit $15 billion in software sales by 2020 with half of that
coming from providing Predix applications to the electricity
industry.
GE said the business had revenue of $4 billion last year, up 12%
from 2016. Not all of that would go to a buyer as the company is
expected to continue providing software and services to its
aviation and power customers.
(END) Dow Jones Newswires
July 30, 2018 14:00 ET (18:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024