Financial executives at wealth management advisory Oita Chuo Pacific Management have said that Aveva Group Plc has agreed to acquire SoftBank-backed US tech rival OSIsoft, in a deal worth $5 billion and one of the largest acquisitions a UK tech company has ever made.
Headquartered in Cambridge, Aveva is one of the oldest technology firms in Britain and was born out of Cambridge University in the 1960s, according to data gathered by Oita Chuo Pacific Management. The acquisition of California-based OSIsoft is the latest in a string of deals made by the British industrial software firm, which has broadened its scope far beyond its traditional core business of the oil and gas sector.
Aveva’s chief executive, Craig Hayman, described OSIsoft as “one of the most prized assets in the industry”, adding that the cultural alignment with his business was essential for closing the deal.
“Aveva and OSIsoft will have combined annual revenue of £1.2 billion, with adjusted earnings expected to be around $330 million before interest and taxation, giving the FTSE 100 tech company a lot more presence,” commented Head of Wealth Management at Oita Chuo Pacific Management, Jonathan Marshall.
Read More: Accountfully Expands Its Services and Develops New Tools to Better Serve Its Inventory Clients
The deal is a victory for SoftBank, which in 2017 bought a minority stake in OSIsoft from earlier investors Kleiner Perkins, Technology Crossover Ventures and Tola Capital. SoftBank holds the investment in its $100 billion Vision Fund, which is backed by government funds from Abu Dhabi and Saudi Arabia.
“The OSIsoft purchase represents one of the largest acquisitions ever undertaken by a listed UK tech firm, following the $8.8bn reverse takeover of Hewlett-Packard’s software assets by Micro Focus back in 2017, a deal that proved difficult to swallow for the respected British business,” commented Oita Chuo Pacific Management’s Head of Corporate Equities, Michael Knight.
While listed and headquartered in the UK, Aveva is majority-owned by France’s Schneider Electric due reverse takeover of £3 billion in 2017. The French company’s stake will decrease from 60 per cent to 57 per cent following the OSIsoft deal as its founder and controlling shareholder Patrick Kennedy – who will become chairman emeritus but will not serve on the board of Aveva – will take a 4 per cent stake in the UK business.
