GE Digital Buys Software Provider Meridium (GE)

General Electric Co (GE) subsidiary GE Digital has acquired asset performance management (APM) software provider Meridium. (See Also: Can General Electric Thrive on Digital Evolution?.)

The acquisition comes after GE invested in Meridium in July 2014, buying a 26% ownership stake in the company. This week, the total Meridium acquisition was completed at an enterprise value of $495 million, according to GE.quisition

GE Digital CEO Bill Ruh noted Meridium complements his company’s existing portfolio in several areas, including:

  • Cognitive analytics
  • Reliability-centered maintenance
  • Operational risk management and asset health
  • Intelligent asset strategies

Moreover, Ruh stated that Meridium possesses “a mature software development culture, which will help [GE] enhance [its] bench of deep technology talent.”

Meridium CEO Bonz Hart echoed Ruh’s sentiments, pointing out that Meridium now can access GE’s industrial portfolio. As such, Meridium may be able to help GE expand its “depth of domain expertise in the Industrial Internet,” Hart noted.

GE and the Enterprise APM Space

GE’s APM offering currently leverages the Predix industrial cloud-based platform. Moving forward, the combination of Meridium’s APM solutions with GE’s APM offering may help “strengthen the connection between real-time asset performance management and reliability-centered maintenance strategies and work processes,” GE stated.

In addition, the demand for APM solutions among IT organizations worldwide could drive GE Digital’s growth in the enterprise APM market.

Technology research firm Gartner pointed out that many chief information officers (CIOs) and IT leaders require enterprise APM strategies to help their organizations “achieve higher levels of operational reliability, safety and efficiency.” As the push for APM solutions continues among IT organizations globally, GE Digital could be at the forefront of the enterprise APM market’s growth as well.

And with its acquisition of Meridium, GE may gain a competitive edge in the enterprise APM market, one that could help the company further increase its revenues for years to come.

[Source:-Investopedia]