Plex Systems’ leading subscription-based smart manufacturing platform accelerates customers’ digital transformation and increases insight into end-to-end production systems with simple, cloud-native solutions. Plex acquisition expected to accelerate Rockwell annual recurring revenue goal achievement by approximately two years.
Plex Systems, the cloud-native smart manufacturing platform operating at scale, and Rockwell Automation, Inc., the world’s biggest business devoted to industrial automation and digital transformation, announced today that Rockwell has agreed to buy Plex for $2.22 billion in cash.
Plex is multi-tenant, single-instance SaaS manufacturing platform with sophisticated production execution systems, quality, and supply chain management features. It serves more than 700 clients and processes over 8 billion transactions every day. Rockwell’s global market reach, complementing industry experience, and ability to transform real-time data into meaningful insights will further distinguish Plex’s software capabilities.
Commenting on the acquisition, Blake Moret, Chairman and CEO of Rockwell Automation, said, “This acquisition will accelerate our strategy to bring the Connected Enterprise to life, driving faster time to value for our customers as they increasingly adopt cloud solutions to improve resilience, agility, and sustainability in their operations. Combining Plex’s cutting-edge cloud technology with Rockwell’s existing software portfolio and domain expertise will add customer value and create more ways to win. The acquisition will also accelerate our software revenue growth and strengthen our annual recurring revenue streams.”
A growing dilemma for manufacturers is the urgent need to increase production and improve resilience, while driving efficiency and compliance. Modern, cloud-based industrial execution systems that are simple to deploy, use, and maintain are becoming increasingly popular among businesses. Customers may use Plex’s platform to connect, automate, track, and analyse their operations and supply chains.
“Rockwell believes in the power of data and technology to transform manufacturing and industrial operations,” said Brian Shepherd, Senior Vice President, Software and Control, for Rockwell Automation. “Together with the advanced asset maintenance and management capabilities provided by our recent Fiix acquisition, Rockwell will have a strong portfolio of cloud-native solutions for our customers’ production systems upon completion of the Plex acquisition.”
Plex will be included in Rockwell’s Software and Control operating division, which offers cutting-edge hardware and software for the design, operation, and maintenance of industrial automation and management systems. Rockwell will welcome around 500 highly engaged new employees as part of the acquisition.
The acquisition will be financed with a combination of cash and short-term and long-term debt. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to close in Rockwell’s fiscal fourth quarter.