Siemens Intelligent Infrastructure today announced that it has signed an agreement to acquire Brightly Software, a Us-Based SaaS provider of asset and maintenance management solutions. The acquisition will strengthen the Siemens Intelligent Infrastructure Group's market position in building and infrastructure software.
Siemens Intelligent Infrastructure today announced that it has signed an agreement to acquire Brightly Software, a Us-Based SaaS provider of asset and maintenance management solutions. The acquisition will strengthen the Siemens Intelligent Infrastructure Group's market position in building and infrastructure software. The purchase price is $1.575 billion, plus contingent payments. With this acquisition, Siemens will be able to combine Brightly's cloud capabilities in key areas such as education, public infrastructure, healthcare and manufacturing with its digital and software expertise in buildings. At the same time, we will further improve Siemens' SaaS (Software as a Service) business capabilities, and leverage the joint efforts of both parties to provide products and services for building infrastructure with superior performance and high sustainability. Through this acquisition, Brightly will benefit from Siemens' global presence, while Siemens will be able to leverage its presence in the US market. Siemens is synergizing Brightly's expertise with its own business portfolio, which is expected to reach a mid-single digit net present value in the hundreds of millions of dollars. The project is undergoing regulatory approval and is expected to be completed in 2022. The acquisition will be accretive to earnings per share in the second year after closing.
"This is an important step for us as a focused technology company. By merging the physical and digital worlds, we are able to provide our customers with the technology they need to drive their digital transformation to create smart buildings that are highly sustainable and people-oriented. This acquisition will help us achieve our growth goals, particularly in digital revenue and software as a service." We are proud and excited to welcome Bright-ly to the Siemens family." Roland Busch, Chairman of the Board, president and CEO of Siemens Worldwide.
Infrastructure owners and operators are increasingly demanding software for efficient and sustainable operations. Brightly's well-established SaaS business and customer base, combined with Siemens' existing portfolio of smart buildings and digital products, will facilitate data integration through IT and OT convergence to deliver innovative, personalized user experiences that optimize building and infrastructure performance.
"Brightly will help us take building performance to a new level. Through seamless data exchange between products, customers can improve efficiency, reduce downtime and maintenance costs, shorten life cycles, and get better data-driven decisions, while also making users more satisfied." Matthias Rebelus, member of the Board of Management of Siemens AG and CEO of Siemens Intelligent Infrastructure Group, notes: "This acquisition will accelerate our goal of becoming a leading software company in infrastructure and support our future vision of creating fully autonomous, intelligent buildings that can constantly learn and adapt to user needs."
It is estimated that by 2050, 7 billion people will be living in cities. The combination of urbanization trends and the urgency to address climate change is increasing the need to build smart, sustainable communities and infrastructure. Siemens is committed to building smart communities through digital and intelligent systems. Siemens' solutions, services and software connect the physical and digital worlds, as well as IT and OT, to enable intelligent infrastructure operations.
In 2022, Brightly expects to generate revenue of approximately $180 million and expects annual recurring revenue (ARR) of $160 million. Brightly's market is growing at a compound annual rate of 13 per cent. The company is headquartered in Cary, North Carolina, and has about 800 employees. The company serves approximately 12,000 customers, primarily in the United States, Canada, the United Kingdom and Australia. Since 2019, the company has been owned by private equity firm Clearlake Capital.
"Digital transformation and sustainability are on the agenda for more and more companies, coupled with a challenging regulatory environment and a growing need for connected assets and real-time asset data, leading to a growing demand for smart asset management solutions worldwide." Brightly CEO Kevin Kemmerer said: "We saw a unique opportunity to combine our knowledge and software with Siemens products to accelerate digitization and performance optimization of buildings, help customers evaluate and manage their collective assets, develop short - and long-term capital plans, and manage energy and ESG goals." Together, we will be in a better position to leverage our wealth of experience to help clients around the world improve their asset performance and create safe, sustainable and prosperous communities."
