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- Siemens to acquire US tech company Brightly Software.
- The US$1.58 billion buyout deal to bolster Siemens’ expansion plans in SAAS.
- Brightly Software was earlier bought by Clearlake Capital in 2019.
Germany’s Siemens AG (SEIGY) is set to buy US tech company Brightly Software for US$1.58 billion from private equity owner Clearlake Capital, the German industrial manufacturing company announced on Monday. The move is an ongoing effort by Siemens to expand its software division and outpace rivals.
A leader in offering digital systems to help maintain security and energy consumption in buildings, Siemens Smart Infrastructure is buying Brightly to step up its SAAS (software as a service) initiative.
Based in North Carolina, Brightly deals in cloud-based software that collates data from sensors installed in buildings and predicts when maintenance is needed before a problem.
Talking about the acquisition, Roland Busch, CEO of Siemens, says that it will further the company’s growth targets in digital revenue and SAAS.
Siemens will acquire more small- and medium-sized customers through its SAAS initiative. It will offer software as a subscription and not as a purchase.
Brightly’s products are mostly used in schools, hospitals, factories, and offices. The company was bought by Clearlake in 2019 for US$500 million.
Siemens mentioned that Brightly is anticipating revenue of US$180 million in 2022, with an annual growth rate of 13%.
According to a member of the Siemens' management board, Matthias Rebellius, also the chief executive of Smart Infrastructure, Brightly's software complements Siemens' existing building management software.
The deal will likely be completed by the end of this year and will be accretive to EPS in the second year after closing.
The deal will help Siemens augment its efforts to move past rival companies like Schneider Electric of France, Alstom, and GE. The company is striving to combine its core engineering business with digital expertise.
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