GE Advances Digital Leadership with Launch of $1.2 Billion Industrial IoT Software Company
December 13 2018 - 7:00AM
Business Wire
New GE-owned, independently run entity will be
established to expand company’s leadership in IIoT market and
better serve industrial customers
GE selling majority stake in ServiceMax
GE (NYSE:GE) today announced plans to establish a new,
independent company focused on building a comprehensive Industrial
Internet of Things (IIoT) software portfolio. The company will
start with $1.2 billion in annual software revenue and an
existing global industrial customer base. The company is intended
to be a GE wholly-owned, independently run business with a new
brand and identity, its own equity structure, and its own Board of
Directors. The proposed new organization aims to bring together GE
Digital’s industry-leading IIoT solutions including the Predix
platform, Asset Performance Management, Historian, Automation
(HMI/SCADA), Manufacturing Execution Systems, Operations
Performance Management, and the GE Power Digital and Grid Software
Solutions businesses.
Additionally, GE announced an agreement to sell a majority stake
in ServiceMax, a leading provider of field service management
software, to Silver Lake, a leading private equity firm focused on
technology investments. With these actions, GE will sharpen the
focus of its IIoT portfolio to position the new business for future
growth. The transaction is expected to close in Q1 2019, subject to
customary closing conditions and regulatory approvals.
“As an early leader in IIoT, GE has built a strong business with
its industrial customers thanks to deep domain knowledge and
software expertise," said GE Chairman and CEO H. Lawrence Culp, Jr.
"As an independently operated company, our digital business will be
best positioned to advance our strategy to focus on our core
verticals to deliver greater value for our customers, and generate
new value for shareholders."
The IIoT is a nascent market but is expected to have significant
growth. According to Gartner: “Innovations such as smart, connected
products, the industrial Internet of Things (IoT), ‘digital twins,’
advanced analytics and artificial intelligence will be key to
productivity improvement and new IT demand in this sector through
2022. The proliferation of digital products and subsystems to
enable the IoT in downstream industries and generate revenue from
smart products over their entire life cycle will be the most
promising (and complex) driver for new IT spending growth through
2022.”*
GE’s independent software business moves into the market with a
strong position, building on the company’s experience and success
developing solutions to drive the outcomes that matter most for
asset-intensive industries.
GE’s new IIoT business would provide software for these asset
intensive industries with a focus on the power, renewables,
aviation, oil and gas, food and beverage, chemicals, consumer
packaged goods and mining industries. These industries build on
GE’s foundation and expertise as a leading MES provider for nearly
20 years. With an already thriving business in these areas, the new
digital organization is positioned to accelerate GE’s ability to
deliver IIoT solutions that meet the needs of these industrial
customers, addressing the most impactful aspects of the asset
lifecycle.
GE Digital CEO, Bill Ruh, has decided to depart GE to pursue
other opportunities. The company intends to conduct an internal and
external search to identify the CEO for this new independent
company. Further details on GE’s new IIoT software company
will be announced in Q1 2019. This plan is subject to
customary regulatory approvals, including information and
consultation with employee representatives where required.
*Source: Forecast: Enterprise IT Spending for the Manufacturing
and Natural Resources Market, Worldwide, 2016-2022, 3Q18 Update
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 GE
GE (NYSE:GE) drives the world forward by tackling its biggest
challenges. By combining world-class engineering with software and
analytics, GE helps the world work more efficiently, reliably, and
safely. For more than 125 years, GE has invented the future of
industry, and today it leads new paradigms in additive
manufacturing, materials science, and data analytics. GE people are
global, diverse and dedicated, operating with the highest integrity
and passion to fulfill GE’s mission and deliver for our customers.
www.ge.com
GE’s Investor Relations website at www.ge.com/investor and our
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well as GE’s Facebook page and Twitter accounts, contain a
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these websites from time to time, as information is updated and new
information is posted.
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GE Investor Contacts:Todd Ernst,
617.443.3400todd.b.ernst@ge.com
GE Media Contact:Amy Sarosiek,
925.968.7871amy.sarosiek@ge.com
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