PTC is acquiring ServiceMax for €1.4 billion euros in cash. ServiceMax provides SaaS-based field service management solutions. With the acquisition, PTC aims to expand its product lifecycle management (PLM) business.
The plan is to integrate ServiceMax’s digital product information into PTC’s enterprise asset management (EAM) and field service management (FSM) solutions.
ServiceMax provides FSM software based on the Salesforce platform. Companies use the software to manage all product- and service-related topics, including descriptions, maintenance histories, work tasks, schedules and maintenance orders.
By integrating FSM functionality, PTC wants to provide users with a digital ‘system of record’ for monitoring and maintaining assets. Both companies operate in the medical, aerospace and industrial sectors.
PTC and ServiceMax have been working together for some time. The combination of the two product portfolios should provide a complete digital product definition, according to the PTC. The organization wants to extend the information provided by its CAD, PLM and IoT solutions to the maintenance history made available by ServiceMax.
PTC plans to finance the €1.4 billion acquisition in two instalments. The first amount of about €779 million ($808 million) is to be paid in January next year. That’s when PTC expects to finalize the acquisition. The second amount of about €627 million ($650 million) is due in October 2023.