GE announced plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things (IIoT) software portfolio. The company will start with $1.2 billion in annual software revenue and an existing global industrial customer base. The company is intended to be a GE wholly-owned, independently run business with a new brand and identity, its own equity structure, and its own Board of Directors. The proposed new organization aims to bring together GE Digital’s IIoT solutions, including the Predix platform, Asset Performance Management (APM), Historian, Automation (HMI/SCADA), Manufacturing Execution Systems (MES), Operations Performance Management (OPM), and the GE Power Digital and Grid Software Solutions businesses.
Additionally, GE announced an agreement to sell a majority stake in ServiceMax, a major provider of field service management software, to Silver Lake, a private equity firm focused on technology investments. With these actions, GE will help sharpen the focus of its IIoT portfolio to better position the new business for future growth. The transaction is expected to close in Q1 2019, subject to customary closing conditions and regulatory approvals.
GE’s new IIoT business would provide software for these asset intensive industries with a focus on the power, renewables, aviation, oil and gas, food and beverage, chemicals, consumer packaged goods and mining industries. These industries build on GE’s foundation and experience as a MES provider for close to 20 years. With an already established business and market share in these areas, the new digital organization is positioned to help accelerate GE’s ability to deliver IIoT solutions that meet the needs of these industrial customers, addressing most aspects of the asset lifecycle.
GE Digital CEO, Bill Ruh, has decided to depart GE to pursue other opportunities. The company intends to conduct an internal and external search to identify the CEO for this new independent company. Further details on GE’s new IIoT software company will be announced in Q1 2019. This plan is subject to customary regulatory approvals, including information and consultation with employee representatives where required.