PTC, a Boston, MA-based provider of solutions that enable companies to differentiate their products and services, improve operational excellence, and increase workforce productivity, acquired ServiceMax, a Pleasanton, CA-based provider of cloud-native, product-centric field service management software.
The amount of the deal is approximately $1.46 billion in cash on a debt-free, cash-free basis. The purchase price will be funded in two stages, with $808 million paid at closing and $650 million paid in October 2023. The transaction will be funded with cash on hand, borrowings under PTC’s existing credit facility, and a new $500 million committed term loan. ServiceMax is expected to contribute approximately $160 million in ARR for PTC’s Q2’23. The deal is expected to be accretive to PTC’s FY’23 cash flow from operations, free cash flow, and adjusted free cash flow targets.
With the acquisition, PTC will strengthen its closed-loop product lifecycle management (PLM) offerings by extending the digital thread of product information into downstream enterprise asset management (EAM) and FSM capabilities. ServiceMax’s FSM capabilities will complement PTC’s entire digital thread portfolio by leveraging product definition data from PTC’s Creo and Windchill solutions, technical publishing capabilities from PTC’s Arbortext software, service parts management capabilities from PTC’s Servigistics software, IoT and digital twin capabilities from PTC’s ThingWorx solutions, and augmented reality (AR) capabilities from PTC’s Vuforia software.
Led by CEO Neil Barua, ServiceMax provides a comprehensive suite of cloud-native FSM capabilities built on the Salesforce platform. These capabilities include managing all relevant information about serviced products (product description, serial number, service history, and more) creating and managing work orders, and scheduling and dispatching technicians. The company’s FSM capabilities are also closely integrated with Salesforce’s customer relationship management (CRM) system.
PTC provides global manufacturers with software solutions that enable them to accelerate product and service innovation, improve operational efficiency, and increase workforce productivity. In combination with an extensive partner network, PTC provides customers flexibility in how its technology can be deployed to drive digital transformation – on premises, in the cloud, or via its pure SaaS platform.