Aveva buys SoftBank-backed OSIsoft for $5 bln

AVEVA Group, the software company, announced that it has agreed to acquire real-time industrial data software developer OSIsoft for an enterprise value of 5 billion dollars., Report says, citing Kommersant.

Industrial companies have been incorporating more software into their manufacturing to cut costs and improve their supply chains, benefiting providers such as Cambridge-based Aveva, a member of Britain’s FTSE 100 index of leading shares.

Aveva said it plans a rights issue amounting to about $3.5 billion to fund the purchase of OSIsoft, which makes software that captures data from ships, chemical boilers, power plants, and other facilities in industries including oil and gas, mining, pulp and paper, and water.

“The acquisition of OSIsoft … will accelerate the Enlarged Group’s role in the digitization of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, Cloud, data visualization and artificial intelligence,” Aveva’s Chief Executive Craig Hayman said.

Aveva’s last major deal was three years ago when France’s Schneider Electric took a 60% stake in the company.

Shares in Aveva were up 3% in early trade, and Aveva said Schneider Electric has committed to vote in favor of the deal and take part in the rights issue.