AVEVA And OSIsoft Amplify Their Power By Combining Forces

AVEVA, a global leader in industrial software, and OSIsoft, a global leader in real-time industrial data software and services, have announced an AVEVA acquisition of OSIsoft at $5 billion.

AVEVA and OSIsoft will from now on merge their complementary product servings. This union brings together industrial software and data management. All to help meet their customer priorities and demands as industrial and essential organisations, boosting their digital transformation strategies in a world where traits such as efficiency, flexibility, sustainability and resilience are increasingly dictated by customers.

AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries. Commenting on the agreement, Craig Hayman, CEO of AVEVA, said, “Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set. This will not only help us serve existing customers better but also open the flood gates to new opportunities which will accelerate the delivery of our digitisation vision.”

With a combined 93 years of operating expertise and experience, they share a history of meeting the rapidly changing and evolving needs of their industrial customers, built on foundations of customer centricity and world-class talent.

He further adds that “Data has been enabling organisations to more effectively determine the cause of problems by allowing them to visualise what is happening in different locations, departments and systems. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base which continues to make us leaders in our sector.”

OSIsoft’s data management software will complement AVEVA’s comprehensive end-to-end engineering, operations, and performance offerings. Integrating OSIsoft’s PI System into AVEVA’s comprehensive software portfolio will also create an integrated data foundation that can drive Big Data, Cloud and AI-driven insights to create meaningful business outcomes. This combination allows AVEVA to grow and diversify the industries that it serves all the while expanding its footprint in existing and new markets as well as geographies.

OSIsoft founder and CEO Dr J. Patrick Kennedy indicated that “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners and employees. Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. AVEVA’s interest in OSIsoft is a testament to our talented team, and the extraordinary value of the PI System as the real-time streaming data infrastructure that powers the industrial world.”

OSIsoft is currently owned by three shareholders:

• Estudillo Holdings Corp. (“Estudillo”), a company majority owned by Dr. J. Patrick Kennedy and his family
• SB/OSI, Inc. (“SoftBank”), a company owned by SoftBank Group; and
• MDT Holding, Inc. (“Mitsui”), a company owned by Mitsui & Co.

In unison, the pair can henceforth provide full-stack solutions spanning edge, plant, and enterprise deployment models, strengthening AVEVA’s position as a global leader in industrial software.

OSIsoft works with over 1,000 of the world’s leading power and utilities companies, 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.

With a combined 93 years of operating expertise and experience, they share a history of meeting the rapidly changing and evolving needs of their industrial customers, built on foundations of customer centricity and world-class talent. In addition to sharing a complementary solutions portfolio, this transaction further validates AVEVA’s leading position in digitisation and IIoT.

Aside from that, OSIsoft’s PI System licenses customers to collect, normalise, store, and stream real-time, high-fidelity operational data to applications, analytics, and AI and Machine Learning platforms. PI System acts as a single system of record for operations data, designed for massive cloud-enabled scale and data sharing across enterprises. While at it, PI System qualifies insightful operations decision-making.

OSIsoft works with over 1,000 of the world’s leading power and utilities companies, 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.

Building Stakeholder Value and Improving Sustainability

The complementary product offerings of AVEVA and OSIsoft will allow the combined company to continue generating significant value for its stakeholders by creating new opportunities for innovation using new and emerging technologies. The two product suites are open and interoperable, and many customers leverage both solution sets.

Philip Aiken, Chairman of AVEVA, said, “I am delighted that we have reached agreement to acquire OSIsoft. The acquisition has compelling strategic rationale with strong operational and financial benefits. The acquisition will strengthen AVEVA’s position as a global leader in industrial software, whilst a combination of the complementary product offerings of AVEVA and OSIsoft is expected to allow the Enlarged Group to accelerate growth and continue to generate significant shareholder value.”

As a combined entity, AVEVA and OSIsoft can further deliver on their sustainability goals, driving significant benefits and value for their customers. With broader, deeper scale and scope to lead the digital transformation of the industrial sector, the combined company will drive greater efficiencies and sustainability for many diverse essential industries, including consumer packaged goods (CPG), pharmaceutical, water and wastewater, and utilities, creating strengthened product offerings.

Dr J. Patrick puts it best. “Today’s announcement is the culmination of a thoughtful search for a respected organisation that would mesh with our own strong mission – and customer-driven culture. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement in my new role as the largest individual shareholder in the combined company and as Chairman Emeritus to ensure we realise the full benefits of this transaction.”