Silver Lake, a global private equity firm focused on technology investments, is to sell ServiceMax to PTC, a SaaS provider for the manufacturing sector, for approximately $1.46 billion in cash on a debt-free, cash-free basis.
Silver Lake, a global private equity firm focused on technology investments, is to sell ServiceMax to PTC, a SaaS provider for the manufacturing sector, for approximately $1.46 billion in cash on a debt-free, cash-free basis.
ServiceMax is a specialist in cloud-native, product-centric field service management (FSM) software.
The acquisition is expected to strengthen PTC’s closed-loop product lifecycle management (PLM) offerings by extending the digital thread of product information into downstream enterprise asset management (EAM) and FSM capabilities.
Subject to the satisfaction of regulatory approval and other applicable closing conditions, the transaction is expected to close in early January 2023.
The purchase price will be funded in two stages, with $808 million paid at closing and $650 million paid in October 2023. The transaction will be funded with cash on hand, borrowings under PTC’s existing credit facility, and a new $500 million committed term loan.
ServiceMax is expected to contribute approximately $160 million in ARR for PTC’s Q2’23.
The transaction is expected to be accretive to PTC’s FY’23 cash flow from operations, free cash flow, and adjusted free cash flow targets.
Centerview Partners LLC acted as exclusive financial advisor to PTC on the transaction and Goodwin Procter LLP served as legal counsel. JPMorgan Chase Bank, N.A., BofA Securities, Inc., The Huntington National Bank, and TD Securities (USA) LLC will provide transaction financing to PTC.
Barclays acted as financial advisor to ServiceMax, and Ropes & Gray LLP served as legal counsel.
