PTC’s press release says that ThingWorx, which markets a platform that enables companies to connect devices like fridges to the Internet, will help “position PTC as a major player in the emerging Internet of Things (IoT) era”. You might recall that the IoT message was a big part of PTC’s user conference earlier this year, so this deal isn’t a total surprise. We’ll learn more tomorrow, when PTC holds an investor conference call.
The company did say that ThingWorx is expected to add $10 million in revenue over the next 12 months, with $5 million to $7 million in fiscal 2014 (ending in September 2014). This implies as 12x revenue multiple for the purchase price — yowza.
Personally, I’m a bit creeped out by the Internet of Things –I don’t want my fridge calling me at an inopportune moment to tell me that we’re low on milk and am a bit concerned about evil-doers hacking into my car’s onboard systems– but I totally see the logic of the acquisition. Imagine your car knowing when it needs service for a recall notice, the photocopier guy showing up just before the machine needs something replenished — that’s a much higher level of service and engagement that manufacturers can offer their customers. And now PTC can start to connect the dots of product design, and after-sales services from both the buyer’s and seller’s perspectives.
PTC also announced that preliminary data shows that fiscal first quarter revenue is likely to be at the higher end of guidance, or around $310 million to $320 million. Full details will be made public on January 22.
More on the acquisition sometime later this week.