PTC to buy software firm ServiceMax for around $1.5bn

PTC said on Thursday that it has agreed to buy software firm ServiceMax for around $1.46bn in cash from an entity majority owned by Silver Lake.

ServiceMax is a leader in cloud-native, product-centric field service management (FSM) software, PTC said.

It said the deal is expected to 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.

PTC chief executive and president Jim Heppelmann said: "The addition of ServiceMax will realise a key part of PTC's closed-loop PLM strategy.

"The PLM capabilities PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration. ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and move into customer use."

PTC said the transaction, due to close in January next year, is expected to be accretive to its FY23 cash flow from operations, free cash flow, and adjusted free cash flow targets.