- General
- December 13, 2018
- 6 minutes read
General Electric Sells Majority Stake in ServiceMax to Silver Lake
Silver Lake Partners co-founder Glenn Hutchins Photograph by Stuart Isett/Fortune Brainstorm TECH General Electric has announced it’s offloading a majority…
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| Silver Lake Partners co-founder Glenn Hutchins
Photograph by Stuart Isett/Fortune Brainstorm TECH
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General Electric has announced it’s offloading a majority stake in ServiceMax, the cloud-based software provider it scooped up for $915 million to private equity firm Silver Lake. GE will retain a 10% stake in ServiceMax after the deal closes.
General Electric’s software arm, GE Digital has also entered into a reseller agreement with ServiceMax that’ll ensure ongoing collaboration between both after this sale to serve joint customers including General Electric’s industrial business unit.
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| Photo by Chuck Miller on Flickr |
According to GE, ServiceMax in its two years after acquisition has delivered growth that has outpaced the market and will as a separate company possess the strategic focus required to dig deep into the $34 billion global Field Service Management software market opportunity.
It’s estimated that majority of the 39 million field technicians globally responsible for installation, maintenance and repair of machines do not have access to Field Service Management software like ServiceMax which counts as a key opportunity for the company.
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| Hutchins at the Fortune Brainstorm TECH 2014 conference
Photograph by Stuart Isett/Fortune Brainstorm TECH
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“Joining the Silver Lake family will provide the investment we need in continued technology development and market expansion in areas where we have seen significant traction, such as medical devices, construction and manufacturing industries.” ServiceMax CEO Scott Berg said. ‘The new company structure gives us both the flexibility to provide solutions to all industrial manufacturers and the strategic backing of GE to continue to pursue the industrial asset operator markets.”
“Field Service Management is a core element in the digital transformation of industrial operations, and ServiceMax’s innovative platform provides field technicians with next-generation, business-critical software and technology,” Silver Lake managing director Kenneth Hao added.“We look forward to working with ServiceMax and GE to bring ServiceMax’s technology to a broader customer base, increase investments in product development and help the company achieve its long-term potential.”
