Boston design and machine management software company PTC is buying maintenance software firm ServiceMax for almost $1.5 billion, the companies said on Thursday.
The deal marks the largest acquisition yet for PTC chief executive Jim Heppelmann, who has been expanding the company’s reach by buying smaller rivals for over a decade. In April, Heppelmann agreed to buy Intland Software for $280 million, and he bought Arena Solutions in 2021 for $715 million.
Shares of PTC, which had bucked the market and gained 2 percent so far this year, lost about 5 percent after the deal was announced.
California-based ServiceMax’s software helps manufacturing companies keep track of the serial numbers, features, and service histories of their products. The software then aids manufacturers in dispatching technicians to service products.
PTC has long sought to move beyond software helping customers design products and into apps for tracking, maintenance, and servicing products. “PTC is poised to be the only company that will be able to offer manufacturers this comprehensive view of their products at each stage of the lifecycle,” Heppelmann said in a statement.
ServiceMax’s majority owner, private equity firm Silver Lake, acquired its stake in the software company from GE Digital in 2019 for an undisclosed price. GE acquired the company in 2016 for $915 million.
PTC will pay $808 million for ServiceMax when the deal is completed, expected by January. It then owes another $650 million, to be paid in October 2023.
The purchase follows failed plans for ServiceMax to go public last year by merging with a special purpose acquisition company.