Rockwell Automation, an American industrial automation and information technology provider, has reportedly acquired Plex Systems, a leading operator of a cloud-native smart manufacturing platform, for $2.22 billion in cash.
Following the acquisition, Plex will be included in Rockwell's Software and Control operating segment which offers innovative solutions for the operation, design, and maintenance of production automation and management systems.
The software capabilities of Plex will evolve Rockwell's complementary industry expertise and ability to modify real-time data into actionable insights. As for Rockwell, it will be hiring more than 500 employees as part of this acquisition.
For the uninitiated, Plex provides a single-instance, multi-tenant SaaS business platform that operates at scale. The platform includes innovative manufacturing execution systems, excellence, and supply chain management competencies. Plex serves around 700 customers and supervises approximately 8 billion transactions per day.
Blake Moret, Chairman and CEO of Rockwell Automation, said this acquisition would accelerate their plan to bring Connected Enterprise to life, resulting in faster time to value to customers as they increasingly embrace cloud solutions to improve agility, resilience and sustainability to their operations.
Additionally, the combination of Plex's leading-edge cloud technology with Rockwell's existing software portfolio, along with the domain expertise, will add value to customers and create more ways to win. This move will also assist in boosting their firm’s software revenue growth and reinforce the annual recurring revenue streams.
Bill Berutti, CEO of Plex, said that their company is a pioneer in the smart manufacturing movement and are currently partnered with more than 700 manufacturing companies globally. Collaborating with Rockwell is a great move for their customers, partners, and employees and it will aid in expanding the reach and speeding up the mission of bringing manufacturing to the cloud.
Reliable reports claim that Rockwell Automation will fund the acquisition through a combination of cash and short- and long-term debt. Depending on usual closing conditions and regulatory scrutiny, the transaction is expected to finalize in Rockwell's fiscal fourth quarter.