The coronavirus pandemic has given ServiceMax a lift, according to CEO Neil Barua, as employers appreciate the necessity of equipping field personnel with the most up-to-date gear.
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ServiceMax
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Updated at 5:55 p.m. on July 15, 2021 ET
The firms said Thursday that ServiceMax has agreed to merge with a special-purpose acquisition company in a deal that will take the maker of software for field-service specialists public.
Silver Lake, a private equity firm, is one of the current owners of the software company.
The General Electric Company (GE) is a multinational corporation headquartered in
GE is down 0.39 percent.
is the venture capital arm of the commercial software behemoth
Salesforce.com
-2.00 percent CRM
—will be combined with
Pathfinder Acquisition Corp. is a company that specializes in buying and selling properties
0.10 percent PFDR
ServiceMax is valued at $1.4 billion in the purchase.
The transaction was first reported in the Wall Street Journal.
ServiceMax has also agreed to pay $145 million to private equity company Luminate Capital Partners for LiquidFrameworks Inc., which supplies field-service software to the oil and gas industry. The $335 million in cash revenues from the merger with Pathfinder will be used to fund the transaction.
SPACs raise money by coming public as empty shells and then searching for a business to merge with for a defined amount of time, usually two years. The method gained appeal last year because it is faster and has fewer regulatory hurdles than a typical initial public offering, but interest has waned recently.
Pathfinder, which debuted in April, is the result of a collaboration between HGGC LLC and Industry Ventures, a private equity group.
ServiceMax’s cloud-based software, which is developed on top of Salesforce’s platform, assists field-service employees in a range of industries with more effective equipment maintenance. Among its clients are:
Schneider Electric is a company that manufactures and distribute
SE,
3D Systems Corp. is a company that specializes in 3D printing.
and
GE
GE is down 0.39 percent.
Healthcare.
According to ServiceMax Chief Executive Neil Barua, the coronavirus epidemic has boosted the company’s sales since more businesses see the need of equipping field employees with the most up-to-date technologies.
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“Companies understand that they can’t send frontline workers out to fix a paper mill or a forklift in an emergency.
Amazon
Mr. Barua, who will remain as CEO, said, “We didn’t provide them the software to do that because we didn’t give them the software to do it because we didn’t give them the software to do it because we didn’t give them the software “Right now, we’re really feeling that tailwind on the back of our neck.”
The company was created in 2007 and was previously a part of GE Digital. It is based in Pleasanton, California. As part of its effort to eliminate businesses unrelated to its core business, GE decided to sell 90 percent of the company to Silver Lake in late 2018. The Wall Street Journal said that the deal’s exact details were not published, but the company was valued at a lower price than the $915 million GE paid for the entire corporation in 2016.
In February 2020, Salesforce Ventures and Silver Lake led a further $80 million investment in ServiceMax. The money would be used to boost product development and customer experience in manufacturing, medical devices, energy, heavy equipment, and other industrial areas, according to the business at the time.
Silver Lake, Salesforce Ventures, and GE all have full ownership of the company.
Miriam Gottfried can be reached at miriam.Gottfried@wsj.com.
Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8
‘ServiceMax To Go Public After Deal With SPAC,’ appeared in the print edition on July 16, 2021./n
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