Silver Lake to Acquire Majority Stake in ServiceMax from GE Digital
December 13 2018 - 7:00AM
Business Wire
Strategic partnership to accelerate growth of
leading provider of Field Service Management software
GE to continue as minority investor
GE Digital (NYSE: GE) and Silver Lake announced today an
agreement for GE Digital to sell a majority stake in ServiceMax, a
leading provider of cloud-based software productivity tools for
field service technicians, to Silver Lake, the global leader in
technology investing. Under the agreement, GE will retain a 10%
equity ownership in ServiceMax. Since GE Digital acquired the
company in 2016, ServiceMax has continued to invest in its
technology and delivered growth that has outpaced the market over
the past two years. ServiceMax and GE Digital have also entered
into a reseller agreement to ensure ongoing collaboration to serve
their joint customers, including GE’s industrial business units,
and plan to continue to deeply integrate their technology
offerings.
In collaboration with Silver Lake, ServiceMax will enjoy
increased agility to accelerate its growth initiatives, pursue new
strategic partnerships and execute a dedicated Field Service
Management agenda. ServiceMax offers cloud software tools that
improve the productivity of complex service and equipment-centric
business operations for over 400 corporate customers across dozens
of industries. As a separate company, ServiceMax will have the
strategic focus required to penetrate the vast $34 billion global
Field Service Management software market opportunity. The majority
of the approximately 39 million field technicians globally who
install, maintain and repair machines do not currently have access
to any Field Service Management software such as ServiceMax.
“ServiceMax has a strong foundation of customers inside and
outside the GE customer base,” said Scott Berg, CEO, ServiceMax.
“In Silver Lake, we have found a partner with a technology growth
mindset and unique expertise in separating companies into
standalone businesses. Joining the Silver Lake family will provide
the investment we need in continued technology development and
market expansion in areas where we have seen significant traction,
such as medical devices, construction and manufacturing industries.
The new company structure gives us both the flexibility to provide
solutions to all industrial manufacturers and the strategic backing
of GE to continue to pursue the industrial asset operator
markets.”
“Field Service Management is a core element in the digital
transformation of industrial operations, and ServiceMax’s
innovative platform provides field technicians with
next-generation, business-critical software and technology,” said
Kenneth Hao, Managing Partner and Managing Director of Silver Lake.
“We look forward to working with ServiceMax and GE to bring
ServiceMax’s technology to a broader customer base, increase
investments in product development and help the company achieve its
long-term potential.”
As part of GE Digital, ServiceMax accelerated market reach into
new regions, expanded its Field Service Management capabilities and
introduced its offerings to new industries. With this new
relationship, GE Digital and ServiceMax will continue to work
together to provide solutions that help companies transform how
they operate and manage their industrial assets across the entire
asset lifecycle. The two companies will continue to advance the
integration between GE Digital’s Predix Asset Performance
Management suite and ServiceMax’s field service management solution
– arming customers with a complete solution for proactive and
predictive maintenance.
For almost 20 years Silver Lake has invested behind enterprise
technology leaders in partnership with management. ServiceMax joins
current and prior Silver Lake portfolio companies such as Broadcom
(then Avago Technologies), Cast & Crew, the Dell Technologies
family of businesses (including Pivotal, SecureWorks and VMware),
GoDaddy, NXP, Red Ventures, Skype, SolarWinds and Unity.
The transaction is expected to close in early 2019. Financial
terms of the deal were not disclosed.
Morgan Stanley & Co. LLC served as financial advisor and
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor
to Silver Lake.
About GE Digital
GE Digital is reimagining how industrials build, operate and
service their assets, unlocking machine data to turn valuable
insights into powerful business outcomes. GE Digital’s Predix
portfolio – including the leading Asset Performance Management and
Field Service Management applications, as well as Predix Private
Cloud – helps its customers manage the entire asset lifecycle.
Underpinned by Predix, the leading application development platform
for the Industrial Internet, GE Digital enables industrial
businesses to operate faster, smarter and more efficiently,
wherever their operations require. For more information,
visit www.ge.com/digital.
About Silver Lake
Silver Lake is the global leader in technology investing, with
about $45.5 billion in combined assets under management and
committed capital and a team of approximately 100 investment and
value creation professionals located in Silicon Valley, New York,
London and Hong Kong. Silver Lake’s portfolio of investments
collectively generates more than $225 billion of revenue annually
and employs more than 390,000 people globally. The Silver Lake
portfolio includes leading technology and technology-enabled
businesses such as Alibaba Group, Ancestry, Broadcom Limited, Cast
& Crew, Ctrip, Dell Technologies, Endeavor, Fanatics, Global
Blue, GoDaddy, Motorola Solutions, Red Ventures, Sabre, SoFi,
SolarWinds, Symantec, Unity, Weld North Education and WP Engine.
For more information about Silver Lake and its entire portfolio,
please visit www.silverlake.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20181213005178/en/
For GE Digital:Amy Sarosiek925-968-7871amy.sarosiek@ge.comFor
Silver Lake:Patricia
Graue212-333-3810silverlake@brunswickgroup.com
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