GE buys Meridium asset management firm for $495m
September 28, 2016
GE Digital has acquired Meridium, a Virginia-based asset performance management (APM) software and services company. This acquisition should help GE accelerate its APM offering and unify real-time analytics with reliability-centred maintenance best practices.
Meridium customers will gain access to GE’s deep domain expertise in real-time data management and industrial analytics.
In July 2014, GE made an initial investment in Meridium for a 26 per cent stake in the company. The total acquisition, inclusive of the original investment, was executed for an enterprise value of $495m.
Leveraging the Predix platform, GE’s APM offering helps deliver on the promise of the industrial internet by enabling industrial companies to increase the reliability and availability of their industrial assets, while reducing operational cost and risk. APM powered by Predix combines GE’s expertise in advanced asset-centric analytics, industrial software and value-added services to help its customers deliver targeted asset uptime and performance.
“As we forge ahead in the industrial internet journey, APM is clearly the first application that can leverage the Predix platform to help industrial customers benefit from increased productivity,” said Bill Ruh, CEO of GE Digital. “With Meridium joining the GE Digital family, we can immediately complement our existing portfolio with the Meridium expertise in cognitive analytics, reliability centred maintenance, operational risk management and asset health, as well as intelligent asset strategies. Meridium also has a mature software development culture, which will help us enhance our bench of deep technology talent.”
The addition of Meridium’s enterprise software brings additional capabilities and processes focused on asset-centric industries – such as oil and gas, power and chemicals – that complement GE’s existing offerings. The combination of the companies’ technologies helps strengthen the connection between real-time asset performance and reliability-centred maintenance strategies and work processes.
“This move gives Meridium access to GE’s substantial industrial portfolio, and provides a deeper connection to core industrial businesses and GE’s depth of domain expertise in the industrial internet,” said Bonz Hart, founder and CEO of Meridium. “We are excited to join GE Digital and expand Meridium’s capabilities into more industries.”
After GE’s initial investment in Meridium, this acquisition is seen as a natural step in the relationship. GE Digital plans to expand rapidly on Predix; Meridium’s APM products are already integrated into the Predix platform. The transaction is complete.
GE Digital connects streams of machine data to analytics, providing industrial companies with insights to manage assets and operations more efficiently.