AVEVA, the industrial software company, announced on August 25, 2020, its intention to acquire OSIsoft from Dr. J. Patrick Kennedy and OSIsoft investors, including SoftBank, for $5 billion. The acquisition is expected to close in late 2020 or early 2021. AVEVA is to finance the deal through $4.4 billion of cash plus $600 million of stock, making Dr. Kennedy AVEVA’s largest private shareholder with 4.4% of the company. Dr. Kennedy will remain connected to AVEVA through a Chairman Emeritus role. AVEVA will raise the capital through $3.5 billion of rights issues plus $900 million of cash on their balance sheet. The deal represents a multiple of roughly 10X OSIsoft’s 1H-2020 annualized revenues, a multiplier similar to AspenTech’s, one of AVEVA’s major competitors.
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