On November 18, PTC announced that it had signed a definitive agreement to acquire ServiceMax for approximately $1.46 billion in cash. It is a provider of cloud-native, Salesforce-based Field Service Management (FSM) software in the U.S., majority owned by investor Silver Lake. This is a continuation of PTC’s efforts to offer the most comprehensive data management for the manufacturing industry from a single source.
Jim Heppelmann, President and CEO of PTC, explains the acquisition as follows: “The acquisition of ServiceMax is an important component of PTC’s closed-loop PLM strategy. The PLM capabilities that PTC has long offered to engineering and manufacturing departments are the system of record for digitally defining every product configuration. ServiceMax will complement this by providing the system for monitoring and maintaining product instances after they leave the factory and are deployed by the customer. Upon completion of this acquisition, PTC will have the unique opportunity to complement the complete digital product definition from our CAD and PLM solutions with detailed usage information from our Internet of Things (IoT) solutions and ServiceMax’s complete service history. PTC will be the only company that can provide manufacturers with this comprehensive view of their products at every stage of the lifecycle.”
PTC and ServiceMax have been working together since 2015 to support manufacturers of complex, highly configured products in the medical device, industrial product, aerospace and related industries. For these manufacturers, customer service is a strategic part of their business.
ServiceMax offers a comprehensive suite of cloud-native FSM capabilities built on the Salesforce platform. These include managing all relevant information about serviced products, creating and managing work orders, and scheduling and dispatching technicians. ServiceMax’s FSM capabilities are also tightly integrated with Salesforce’s customer relationship management.
Subject to regulatory approvals and other conditions, the transaction is expected to close in early January 2023. The purchase price will be paid in two stages: $808 million at closing and $650 million in October 2023. The manner in which ServiceMax will be integrated into PTC’s PLM portfolio is to be decided and announced after the acquisition closes.