PTC and Rockwell Automation have announced an agreement for a strategic partnership that is expected to accelerate growth for both companies and transform their customer’s physical operations with digital technology.
As part of the partnership, industrial automation giant Rockwell Automation will make a $1 billion equity investment in PTC, and Rockwell Automation’s chairman and CEO, Blake Moret, will join PTC’s board of directors with the closing of the equity transaction.
The partnership will leverage both companies’ resources, technologies, industry expertise, and market presence – allowing for some exciting technical collaborations.
In particular, both have agreed to align their respective smart factory technologies and combine PTC ThingWorx IoT, Kepware industrial connectivity, and Vuforia AR platforms with Rockwell Automation’s FactoryTalk MES, FactoryTalk Analytics, and Industrial Automation platforms.
“This strategic alliance will provide the industry with the broadest integrated suite of best-in-class technology, backed by PTC, the leader in IoT and augmented reality, and Rockwell Automation, the leader in industrial automation and information,” said PTC president and CEO Jim Heppelmann.
“Leveraging Rockwell Automation’s industry-leading industrial control and software technology, strong brand, and domain expertise with PTC’s award-winning technology enables industrial enterprises to capitalise on the promise of the Industrial IoT. I am incredibly excited about this partnership and the opportunity it provides to fuel our future success.”
Rockwell Automation will make a $1 billion equity investment in PTC by acquiring 10,582,010 newly issued shares at a price of $94.50, representing an approximate 8.4 per cent ownership interest in PTC based on PTC’s current outstanding shares pro forma for the share issuance to Rockwell Automation.
Meanwhile, PTC intends to use the proceeds from the equity investment to repurchase stock to offset dilution