PTC has signed an agreement to acquire Axeda, a pioneer in the development of solutions to securely connect machines and sensors to the cloud, for approximately $170m.
PTC said that Axeda's technology innovation, extensive customer base, and powerful partnerships directly complement its ThingWorx business, and will accelerate PTC's ability to deliver solutions across the entire Internet of Things (IoT) technology stack. The transaction is expected to be completed in PTC's fiscal Q4 2014.
Secure connectivity, and the ability to leverage machine data to create new business value, are critical components of the IoT technology stack and are in increasing demand as more companies pursue a smart, connected product strategy. Axeda currently serves more than 150 customers, processing hundreds of millions of machine messages daily across multiple industry sectors.
PTC president and CEO, Jim Heppelmann, said: "The world we live in is changing around us, and the pace of that change is accelerating as more and more machines, sensors, and products connect via the Internet to their makers, to their operators, and to each other.
"In recent years, products have become tremendous sources of intelligence as they have been increasingly instrumented with sensors. Until now, manufacturers have been constrained in their ability to securely collect that data and make sense of it all. Axeda's innovative approach to machine connectivity delivers exactly what manufacturers need to capitalise on the massive amounts of data now available from their smart, connected products."
Core to Axeda's IoT technology is the ability to enable companies to establish secure connectivity and remotely monitor and manage a wide range of machines, sensors, and devices. The Axeda Machine Cloud Service includes machine-to-machine (M2M) and IoT connectivity services, software agents, and toolkits that enable companies to connect their products to the cloud using virtually any communication channel (e.g. cellular networks, the Internet, Wi-Fi, or satellite). Axeda's end-to-end security strategy covers all levels of the IoT technology stack, including network, application, user, and data security. The firm has also attained ISO 27001:2005 certification, supporting the company's focus on delivering the highest levels of security, performance, and availability.
In addition, the Axeda Connected Machine Management application set is said to empower companies to remotely monitor and service products, including the ability to deliver over-the-air software updates.
Todd DeSisto, president and CEO, Axeda, said: "Axeda was early to see the potential of the IoT space and we consider ourselves a true market innovator.
"Our technology solutions enable companies to connect to, and manage machines and the data they generate to create new business opportunities. We share PTC's vision for the transformative power of smart, connected products and are excited to contribute to PTC's leadership position in this fast growing market."
In the IoT era, PTC's customers are developing increasingly smart and connected products that can generate value in new ways as streams of real-time operational data are captured, analysed, and shared to deepen a company's understanding of its products' performance, use, and reliability. PTC intends to leverage the Axeda technology portfolio to complement its existing ThingWorx rapid application development platform and its existing service lifecycle management (SLM) and extended product lifecycle management (PLM) solution portfolio.
Heppelmann added: "In less than a year, PTC has quickly scaled to a position of leadership in helping manufacturers seize the opportunity presented by a smart, connected world.
"We believe the combination of ThingWorx, Axeda and our existing SLM and PLM solution portfolio, will establish PTC as the only provider of true closed-loop lifecycle management solutions for the Internet of Things."