(Bloomberg) -- Siemens AG will buy US firm Brightly Software for $1.58 billion to add digital services for buildings and infrastructure as the German company continues its transformation into a software provider.
Brightly, owned by private equity firm Clearlake Capital Group LP since 2019, will bolster Siemens’ growth targets for digital and software revenue, Siemens said Monday. The Cary, North Carolina-based company expects revenue of $180 million this year.
“Brightly will enable us to leapfrog to the next level of performance for buildings,” Matthias Rebellius, head of Siemens’ Smart Infrastructure unit, said in a statement. “The acquisition will speed up our target of becoming a leading software company also in infrastructure and support our vision of creating fully autonomous buildings.”
The industrial-manufacturing giant is focusing on higher-margin, software-driven product lines to help drive returns, and has been divesting non-core businesses as part of that process. Earlier this year, the company agreed to sell the mail and parcel part of its logistics wing to for 1.15 billion euros.
Buildings and infrastructure management software helps provide data on energy usage and CO2 emissions, as well as servicing of air conditioning parts and remote maintenance possibilities. Siemens already offers such services in the U.S. focused on factories and premises, according to a spokesman.
Brightly’s customers include schools and buildings used for health care, and the acquisition will help Siemens grow its footprint. The deal price includes an unspecified performance component.
The deal is expected to close in the calender year 2022, pending regulatory approval. Siemens expects synergies of an expected mid-triple-digit million net present value from the deal according to the statement.
©2022 Bloomberg L.P.
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