AVEVA, a global leader in engineering and industrial software, has announced an agreement to acquire OSIsoft, a global leader in real-time industrial data software and services, for USD 5 billion. Both leading global providers will bring together their complementary products that offer to merge data management and industrial software, intending to help customers in industrial and essential organizations. These combined efforts will help push their digital transformational strategies as efficiency, flexibility, sustainability, and resilience become a necessary factor for customers.

The data management software provided by OSIsoft will complement AVEVA’s comprehensive end-to-end engineering, operations, and performance offerings. Integrating the PI framework of OSIsoft into the extensive software portfolio of AVEVA would create an integrated technology base that can drive big data, cloud, and AI insights to generate real business results for customers. This combination helps AVEVA to develop and diversify its businesses and to continue growing its presence in established and new markets and geographies.

Together, AVEVA and OSIsoft will deliver full-stack solutions that cover edge, plant, and business delivery models, enhancing AVEVA’s role as a global leader in industrial software applications. With 93 years of operational expertise and experience combined, they share a history of meeting their industrial customers’ rapidly changing and evolving needs, built on the foundations of customer centricity and world-class talent. With a vision of sharing a complementary solutions portfolio, this transaction can further validate AVEVA’s leading position in digitization and the Industrial Internet of Things (IIoT).

The PI System from OSIsoft lets customers normalize, collect, store, and stream real-time, high-fidelity operational data to analytics, applications, and AI and ML platforms. PI System serves as a single data management framework for operations, designed for large enterprise-wide cloud-enabled scale and data sharing, and allows insightful decision making of operations.

OSIsoft works with over 38 of the Global Fortune top 40 oil & gas companies, 1,000 of the world’s leading power and utility companies, all of the Global Fortune top 10 metals and mining companies, 9 out of 10 of the Global Fortune top 10 pharmaceutical companies, and 37 out of 50 of the world’s largest chemical and petrochemical companies.

Commenting on the agreement, Craig Hayman, CEO of AVEVA, said: “Combining AVEVA and OSIsoft is yet another significant milestone in our journey to achieving the ambitious growth goals that we have set. This will not only help us serve existing customers better but also open the flood gates to new opportunities, which will accelerate the delivery of our digitization vision. Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments, and systems. This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base, which continues to make us leaders in our sector.”

Dr. J. Patrick Kennedy, OSIsoft Founder and CEO, added: “Joining forces with AVEVA enhances and extends our ability to deliver on our key commitments to our customers, partners, and employees. Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. AVEVA’s interest in OSIsoft is a testament to our talented team and the extraordinary value of the PI System as the real-time streaming data infrastructure that powers the industrial world. Today’s announcement is the culmination of a thoughtful search for a respected organization that would mesh with our own strong mission- and customer-driven culture. The next chapter in PI’s fifth decade will be exciting for our employees and customers, and I look forward to my continued involvement in my new role as the largest individual shareholder in the combined company and as Chairman Emeritus to ensure we realize the full benefits of this transaction.”

Generating significant value for its stakeholders by creating new opportunities for innovation using new and emerging technologies is what the AVEVA and OSIsoft together wish to present as a complementary product. With a vision to lead the industrial sector’s digital transformation, the combined enterprise will drive greater sustainability and efficiencies for many diverse essential industries. The list includes consumer packaged goods (CPG), water and wastewater, pharmaceutical, and utilities, that create enhanced product offerings.