PTC to purchase SaaS field service management provider ServiceMax
PTC, an American computer software and services company, has entered into a definitive agreement to acquire ServiceMax, a SaaS field service management provider based in California, for approximately $1.46 billion.
ServiceMax offers a suite of cloud-native field service management capabilities that are integrated with Salesforce’s customer relationship management platform.
The transaction is anticipated to bolster the service capabilities of PTC’s closed-loop product lifecycle management (PLM) offerings.
Field service management is said to help PTC’s manufacturing clients to sustain product performance, enhance products’ lifecycles, increase revenue growth, expand profitability, and improve customer satisfaction.
PTC to purchase SaaS field service management provider ServiceMax for $1.46 billion. Photo courtesy of PTC.
Jim Heppelmann — PTC President and CEO said: “The addition of ServiceMax will realize a key part of PTC’s closed-loop PLM strategy.
“The PLM capabilities PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration.
“ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and move into customer use.
“Upon completion of this acquisition, PTC will have the unique ability to complement the full digital product definition from our computer-aided design (CAD) and PLM solutions with detailed usage information from our internet of things (IoT) solutions and the complete service history from ServiceMax.”
ServiceMax is anticipated to generate around $160 million in annual recurring revenue for PTC’s second quarter of 2023.
PTC is expected to finance the transaction value in two tranches – $808 million paid at the deal closing and the remaining $650 million to be paid next October.
Expected to close in early January 2023, the transaction is subject to the regulatory approval and other closing conditions.
Since 2015, PTC and ServiceMax have partnered to encourage complex and highly configured products manufacturers of engineering products, medical device, and aerospace industries.