Software licensing company PTC Inc. (Nasdaq: PTC) is buying cloud service provider Axeda Corp. for roughly $170 million.
Based in Foxboro, Massachusetts, Axeda enables companies to connect products to the so-called cloud using cellular, Internet, Wi-Fi, or satellite communication channels. The purchase is expected to enhance PTC's services, including the ability to monitor, service and update products remotely.
The acquisition signifies an exit for Axeda's owner, Baltimore financial sponsor JMI Equity, which made an initial investment in 2005.
The transition to cloud computing is fueling M&A among tech players. Also in July, SanDisk Corp. (Nasdaq: SNDK) closed a deal for cloud storage provider Fusion-io. In June, Oracle Corp. (NYSE: ORCL) agreed to buy Micros Systems Inc. for $5.3 billion. Other deals include International Business Machines Corp. NYSE: IBM)’s purchase of SoftLayer Technologies Inc., another cloud-computing storage provider.
Last December, Needham, Massachusetts-based PTC bought Pennsylvania-based ThingWorx, a provider of maintenance and system monitoring services, for $130 million.
The transaction with Axeda, announced late July 23, came on the heels of a 7 percent revenue increase to $337 million in the third quarter.