Siemens, a global technology giant has agreed to acquire Brightly Software, a US tech company from private equity owner Clearlake Capital for $1.58 billion.
According to a press statement, Siemens is paying more than $1.5 billion to add Brightly to its smart infrastructure operations. The firm claims to be the "global leader in intelligent asset management". Brightly also claims to have more than 12,000 clients internationally in industries including K-12 schools, government, health care and manufacturing. Its revenue for 2022 is predicted at $180 million.
Siemens focuses on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers.
By combining the real and the digital worlds, Siemens empowers the customers to transform their industries and markets, helping them to transform the everyday for billions of people. The company offers its own product, Siemens Apogee, for building operations, which also serves higher education clients.
Commenting on the acquisition, Chief Executive Officer of Siemens, Roland Busch, said in a statement:
"Today's acquisition bolsters our growth targets, especially for digital revenue and software as a service."
Headquartered in North Carolina, Brightly makes cloud-based software that collects data from sensors installed in buildings and analyses when maintenance will be needed before a problem occurs. The startup's software-as-a-service products are designed to monitor and automate energy use, wireless networks and other building operations. It also offers software for managing work orders and staff.
SaaS increases Siemens' access to small- and medium-sized customers by making software a subscription rather than a purchase.
Chief Executive of Smart Infrastructure & Member of Siemens' Managing Board, Matthias Rebellius, added:
"The Brightly acquisition adds to Siemens’ building operations service portfolio, aiding the pursuit of “fully autonomous buildings."
Rebellius further said:
"With seamless data exchange between our offerings, our customers can expect enhanced efficiency, lower downtimes and maintenance costs, shorter life cycles, better data-driven decisions and more satisfied tenants."
The acquisition is part of Siemens' ambition to grow faster than rivals like France’s Schneider Electric (SCHN.PA) and Alstom (ALSO.PA) as well as General Electric (GE.N) by combining its core engineering business with digital expertise.
In 2019, Clearlake had bought Brightly, whose products are used in schools, hospitals, offices and factories, for roughly $500 million.