Quickie: Rockwell invests $1 billion in PTC for IoT & smart factory
This is big: PTC and Rockwell Automation just announced that Rockwell is making a $1 billion equity investment in PTC, as part of a strategic partnership aimed at accelerating growth for both companies. You can see IoT written large all over this announcement, can’t you?
Rockwell will buy 10.58 million newly issued PTC shares at $94.50 per share, about 9% above Friday’s closing price. which will give Rockwell an 8.4% ownership interest in PTC. PTC says that it intends to use the proceeds from the equity investment to repurchase stock to offset dilution, likely a major concern of current shareholders. Once the investment closes, Rockwell CEO Blake Moret will join PTC’s board of directors.
Under the partnership, the companies will align their approaches to the smart factory, combining PTC’s ThingWorx IoT, Kepware connectivity and Vuforia augmented reality platforms with Rockwell’s FactoryTalk MES, FactoryTalk analytics and industrial automation platforms. According to the companies, “The result will be an unmatched integrated information solution that will enable customers to achieve increased productivity, heightened plant efficiency, reduced operational risk, and better system interoperability.”
In what is clearly not a coincidence, Rockwell Automation and PTC will showcase their complementary Rockwell Automation’s TechED event TODAY. This will be livestreamed at 8:00 am PDT / 11:00 am EDT on Facebook.
This transaction is subject to regulatory approvals but is expected to close within 60 days.