Emerson Acquired OSI (Open Systems International)

By Janice Abel

Category:
Acquisition or Partnership

Not to be confused with AVEVA’s recent acquisition of OSIsoft for $5 Billion, Open Systems International, also known as OSI System, was acquired by Emerson for $1.6 Billion in the same week.  ARC has been following both companies for many years.  OSI portrays themselves as a scalable, reliable and secure open automation solution.  Their software includes an advanced automation platform called monarch, a SCADA, cloud platform named Cumulus and a Historian named CHRONUS.  

While OSIsoft is used in many different vertical industries, Open Systems International’s focus is squarely on the electric power and utilities industries, including electric grid management for renewable energy.

With the acquisition, Emerson’s domain expertise and technology in power generation is combined with OSI’s capability in transmission and distribution.  This combination will enable end-to-end capabilities to monitor, control, and optimize operations across the electric grid. 

Utilities are investing in the digital transformation and digitizing the grid and adapting to rapidly evolving energy sources and new technology.  The OSI acquisition will enable Emerson’s clients to further expand their renewable energy usage and accelerate the transformation of the smart power grid.  OSI’s advanced modular technology and power grid management solutions is scalable for other industries.  The technology, combined with Emerson’s Ovation control system, which is known for power generation control, should be an effective partnership for industry growth. 

Together, the scalable and modular technologies of OSI, combined with their customer services and electric power expertise, should help Emerson and OSI’s customers manage reliability and transformation.  The companies have many customers in common, but the acquisition creates many new customers from each of them to develop.  It will be interesting to see how the company’s strategy for their overlapping data platforms and technologies progresses, as well as watch how the company grows in the renewables markets.

OSI has been in business for over 25 years and is headquartered in Minneapolis, Minnesota with the majority of their business in the US.  Emerson is a global company and will help OSI expand globally.  The acquisition is expected to close in early 2021.

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