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, 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, 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.