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GE to Launch Stand-Alone Industrial IoT Software Business

Dec. 14, 2018
The business will have its own brand and will start with $1.2 billion in annual revenue and an existing global industrial customer base.

General Electric, Boston, announced plans to combine its industrial Internet of things (IIoT) software portfolio into a new, independent company. The company will bring together GE Digital’s IIoT solutions including the Predix platform, Asset Performance Management, Historian, Automation (HMI/SCADA), Manufacturing Execution Systems, Operations Performance Management, and the GE Power Digital and Grid Software Solutions businesses in a comprehensive IIoT offering that will start with $1.2 billion in annual revenue and an existing global industrial customer base.

The company is expected 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, said a GE release.

GE also said it has agreed to sell a majority stake in ServiceMax, a provider of field service management software, to Silver Lake, a private equity firm focused on technology investments. Under the agreement, GE will retain a 10% equity ownership in ServiceMax.

“As an early leader in IIoT, GE has built a strong business with its industrial customers thanks to deep domain knowledge and software expertise," said GE Chairman and CEO H. Lawrence Culp, Jr. "As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders."

GE said its new IIoT business would provide software for asset intensive industries with a focus on the power, renewables, aviation, oil and gas, food and beverage, chemicals, consumer packaged goods and mining industries.

As part of the changes, GE Digital CEO Bill Ruh will leave 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 will be announced in Q1 2019.