PTC has announced the sale of its ThingWorx and Kepware products to global alternative asset management firm TPG, seeing its industrial connectivity and Internet of Things (IoT) technology leave the business.
PTC CEO Neil Barua explained the sale as allowing his teams to focus on its core CAD and PLM offerings and its further development of AI and SaaS products.
“With our resources and investments concentrated in these areas, we are confident we can help our customers address their most pressing challenges by enabling them to fully leverage the value of their product data and to transform each stage of the product lifecycle,” he said.
Barua continued, “Kepware and ThingWorx are leading products, and we are pleased that they are gaining an outstanding partner in TPG that is committed to their future growth and to meeting the evolving needs of customers. We look forward to continuing to work with these businesses as they scale and evolve under TPG’s ownership.”
ThingWorx was acquired in January 2014 for $112M, and has since developed into a comprehensive IoT platform for industrial enterprises – letting it connect systems, analyse data and enables the remote management of devices through its secure and scalable architecture.
At the time, then CEO Jim Heppelmann announced the acquisition as part of PTC’s strategy to centre on helping manufacturing companies transform how they create and service smart, connected products.
He said: “For manufacturers today, it is clear to us that improved service strategies and service delivery is the near-term ‘killer app’ for the Internet of Things and this opportunity has guided our strategy for some time. With this acquisition, PTC now possesses an innovation platform that will allow us to accelerate how we help our customers capitalise on the market opportunity that the IoT presents.”
Kepware was acquired not long after ThingWorx and fitted that same vision. A software that facilitates connectivity between industrial automation devices and applications, acting as a communication platform that enables data exchange and integration.
The shift to sell these softwares – along with the rumours earlier this year of Autodesk bidding to acquire PTC – suggests a not insignificant shift from Hepplemann’s vision, and PTC changing its course under Barua’s helm.
TPG is a global asset management firm, with some $286 billion of assets around the world, including its recent acquisition of GE Vernova’s Proficy manufacturing software business for $600 million. It says that the transaction for PTC’s assets would provide the businesses with additional capital and expertise to accelerate growth and further their leadership.
“There is a generational opportunity to evolve and progress manufacturing through solutions that bridge the gap between operational and information technology,” said Art Heidrich, partner at TPG. “Kepware and ThingWorx are driving the digital transformation of the shop floor, helping customers manage and improve their production processes. We are excited to partner with PTC and look forward to supporting the next chapter of growth for these software platforms.”
