ServiceMax has agreed to merge with a specialist acquisition company in a deal that will go public with the maker of field technician software, the companies said Thursday.
The software company, whose current owners include private equity firm Silver Lake, General Electric Co.
and the venture capital arm of enterprise software giant Salesforce.com CRM -2.00%
– will merge with Pathfinder Acquisition Corp.
in a deal that values ServiceMax at around $ 1.4 billion.
The Wall Street Journal reported on the transaction earlier.
ServiceMax also signed an agreement to purchase LiquidFrameworks Inc., which provides field service software to the oil and gas industry, from private equity firm Luminate Capital Partners, for $ 145 million. It will fund the deal out of the roughly $ 335 million in cash resulting from the merger with Pathfinder.
SPACs raise funds by becoming empty shells on the stock market, then have a set period, usually two years, to find a company to merge with. The strategy, which may be faster and have fewer regulatory hurdles than a traditional initial public offering, gained popularity last year, but enthusiasm has cooled lately.
Pathfinder, which debuted in April, is the product of a partnership between private equity firm HGGC LLC and venture capital firm Industry Ventures.
ServiceMax’s cloud-based software, which is built on the Salesforce platform, helps field service agents in a wide variety of industries maintain equipment more efficiently. Its clients include Schneider Electric SE, 3D Systems Corp.
and GE GE -0.39%
Its business has been boosted by the coronavirus pandemic as more employers realize the importance of arming their field workers with the most modern tools, ServiceMax chief executive Neil Barua said in an interview.
“Businesses are realizing that they can’t send frontline workers to repair stationery or forklifts at an Amazon warehouse without giving them the software to do so,” said Barua, who will continue to be employed. the position of CEO. “We’re really feeling that tail wind on the back of our necks right now. “
Headquartered in Pleasanton, California, the company was founded in 2007 and was previously part of GE Digital. At the end of 2018, GE agreed to sell 90% of the company to Silver Lake as part of its desire to dispose of assets unrelated to its core business. The exact terms of this transaction were not disclosed, but the company was valued at a discount from the $ 915 million GE paid in 2016 for the entire entity, the Wall Street Journal reported. .
Salesforce Ventures and Silver Lake led an additional $ 80 million investment in ServiceMax in February 2020. The company said at the time that it planned to use the money to deepen product development and improve the experience. customer in manufacturing, medical devices, energy, heavy equipment and other industrial markets.
Silver Lake, Salesforce Ventures, and GE retain all of their stakes in the business.
Write to Miriam Gottfried at [email protected]
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Appeared in the print edition of July 16, 2021 under the title “ServiceMax To Go Public After Deal With SPAC”.