GE (General Electric) is looking to form a separate and independent company for its industrial internet of things (IIoT) software business.
Based in the US, GE provides products and services for several industries including aviation, healthcare, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, lighting, transportation, and oil and gas.
The aim of establishing a separate venture is to expand company’s leadership in IIoT market and better serve the industrial customers.
The proposed new company will be completely owned by GE, and will run independently with a new identity. It will have unique equity structure, and own Board of Directors.
To start with, GE will invest $1.2 billion in annual software revenue and its existing industrial customer base around the world.
“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 H. Lawrence Culp, Jr., GE Chairman and CEO.
“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 mentioned that the new company will bring together GE Digital’s Predix platform, Asset Performance Management, Historian, Automation, Manufacturing Execution Systems, Operations Performance Management, and the GE Power Digital and Grid Software Solutions.
Apart from forming a new company, GE is selling a majority stake in its ServiceMax to Sliver Lake. ServiceMax is a GE Digital company that provides field service management software, whereas, Silver lake is private equity company focused on technology investments.
Bill Ruh, CEO of GE Digital, is departing from his position, and the company will conduct internal and external searches to find CEO for new company.
GE Digital’s new deals will close in first quarter of 2019, subject to customary closing conditions and regulatory approvals.