PTC acquires ThingWorx for $112 million
PTC has announced on Monday that they are acquiring software development tool company ThingWorx for $112 million plus a possible earn-out of up to $18 million. ThingWorx is experienced in building manufacturing focused software products to a broader set of businesses that have operational processes that includes people, systems, and devices that are critical to deliverables.
Based in Massachusetts, PTC sells products to manufacturers that helps manage supply chains. ThingWorx will continue to help customers in a wide range of industries including utilities, telecommunications, medical devices, transportation, and agriculture.
“All aspects of our strategy to date have centered on helping manufacturing companies transform how they create and service smart, connected products,” stated PTC president and CEO Jim Heppelmann. “For manufacturers today, it is clear to us that improved service strategies and service delivery is the near-term ‘killer app’ for the Internet of Things and this opportunity has guided our strategy for some time. With this acquisition, PTC now possesses an innovation platform that will allow us to accelerate how we help our customers capitalize on the market opportunity that the IoT presents.”
The acquisition is expected to add more than $10 million of revenues over the next 12 months with $5-$7 million of revenue in FY 2014.