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Software giant Aveva merges with OSIsoft in multi-billion dollar deal

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Industrial software giant AVEVA has announced it will purchase real-time data services firm OSIsoft in a deal worth $5 billion.

Announcing the deal in a press release (opens in new tab), the company explained the acquisition will bring together “complementary product offerings” in industrial software and data management.

The takeover will be completed through a combination of rights issuing and new debt, it was added.

AVEVA believes the acquisition will also “continue to generate significant value” for its stakeholders by creating new opportunities for innovation through emerging tech. 

The company hopes to bring in more than $1.57bn in revenue and $433m in earnings after the acquisition. According to MSN (opens in new tab), AVEVA shares jumped 1.6 percent on the news.

Japanese conglomerate SoftBank will also benefit from the deal, holding a minority stake in OSIsoft via its $100bn Vision Fund.

“The acquisition of OSIsoft is perfectly in line with our strategic vision and it will accelerate the enlarged group’s role in the digitisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, cloud, data visualisation and artificial intelligence,” said Aveva CEO Craig Hayman.

“The acquisition will enable Aveva to broaden and deepen its relationships with existing and new customers and bring a more comprehensive product portfolio to market.”

OSIsoft founder, Dr J. Patrick Kennedy, will remain within the business as Chairman Emeritus.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.