Aveva, a supplier of industrial software and services, has agreed terms to acquire OSIsoft, a supplier of real-time industrial data software and services for $5 billion. As part of this acquisition, Aveva will combine OSIsoft’s products with its own.
According to Aveva, the integration of OSIsoft’s PI System data management software with Aveva’s own engineering, operations, and performance products “will create an integrated data foundation that can drive big data, cloud and AI-driven insights to create meaningful business outcomes for customers. This combination enables Aveva to grow and diversify the industries it serves as well as continue to expand its footprint in existing and new markets and geographies.”
Dr. J. Patrick Kennedy, OSIsoft's founder, will reportedly remain involved in the business through his appointment to the newly established role of chairman emeritus.
OSIsoft’s software is currently used at approximately 14,000 sites in 127 countries by more than 1,000 power and utilities companies as its customers, 38 of the Global Fortune Top 40 oil and gas companies, all of the Global Fortune Top 10 metals and mining companies, 37 out of 50 of the world's largest chemical and petrochemical companies, and 9 out of 10 of the Global Fortune Top 10 pharmaceutical companies. The company’s PI System is known for its application as a single system of record for operations data, designed for cloud-enabled scale and data sharing across enterprises to enable more insightful operations decision making.
Aveva’s acquisition of OSIsoft underscores its focus on the process industries in addition to its increasing focus on discrete manufacturing industries. This move to more equally address the process and discrete manufacturing sectors is trending among automation technology suppliers, as evidenced by Emerson Automation Solutions’ recent acquisitions of Aventics and GE Intelligent Platforms.
In the release announcing the acquisition, Aveva said the combination of the two companies’ software will “provide full-stack solutions that span edge, plant, and enterprise deployment models. In addition to sharing a complementary solutions portfolio, this transaction further validates Aveva’s leading position in digitization and IIoT (Industrial Internet of Things).”
Craig Hayman, CEO of Aveva, said, “Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments and systems. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies.”