General Electric Co. (NYSE: GE) agreed to acquire software developer Meridium Inc. to help the industrial giant build its digital division.
Meridium’s focus on asset performance management will boost GE’s ability to monitor and maintain heavy-duty machinery, Boston-based GE said in a statement. The deal, including a 26 percent stake GE took in 2014, is valued at $495 million.
“It enhances our asset performance-management capabilities, not only from a technical perspective, but from a footprint perspective across the globe,” Kate Johnson, chief commercial officer for GE Digital, said in a telephone interview. Meridium’s products are licensed for use at 1,200 locations in 80 countries, she said. “Meridium fits very nicely into the portfolio.”
The move is the latest in a string of small deals in recent weeks for GE, including the Aug. 30 purchase of supply-chain software provider ShipXpress Inc. and offers for two 3D printing companies. The Meridium agreement marks the first transaction by GE Digital, which was formed last year.
GE is looking to fill gaps and bolster operations as the company reorients around industrial manufacturing and complementary software. Chief executive officer Jeffrey Immelt has sold most of the finance and consumer-focused businesses while completing GE’s largest-ever acquisition, a $10 billion deal for Alstom SA’s energy unit, in 2015. Also in 2015, GE completed the sale of Antares Capital.
Closely held Meridium, based in Roanoke, Virginia, specializes in software that monitors equipment data to evaluate performance and prevent the assets from breaking down unexpectedly. The company, which has about 430 employees, serves industries such as chemicals, oil and gas, power and mining.