The deal will see the FTSE 100 company, whose software is used in everything from the production of Danone yogurts to the machines roasting Starbucks coffee beans, nearly double in size – taking it to an estimated $1.2 billion in annual revenues and an estimated operating profit of around $330 million.
Following the acquisition of OSisoft, which helps firms analyse data from factories, Aveva now employs 6,500 people globally.
Aveva raised £2.8 billion from investors last year to help pay for the takeover, which is one of the largest made by a UK tech company.
It comes three years after Aveva – which was first formed back in 1967 as a Government-backed University of Cambridge institute -merged with French firm Schneider Electric, which now owns around 60% of the company. The merger saw the firm enter the FTSE 100.
Chief executive, Craig Hayman, who came back to the UK after spending 30 years in the US to run Aveva, told the Standard he believes the company is a true example of “a British success story”.
He said: “For me I think Aveva is a British success story. It has British roots out of Cambridge and competes very well on a worldwide stage, and in three years has transformed itself… We have been on a bit of a tear over the last three years, and today is another step along the way.”
The company said in an update to the market that “the acquisition enhances AVEVA’s ability to accelerate the digital transformation of the industrial world”.
The deal is expected to see cost savings of upwards of £20 million a year by 2023. Hayman said: “We are going to be busy for the next 12 to 18 months on bringing the two businesses together.
“After that, we have a great business and we are very profitable, and we think there is a lot of opportunity.
“This acquisition expands [us] from around $15 billion to around $20 billion of opportunity – for example with new opportunities in the renewable energy market. We estimate that the total market for global big data analytics will be around $274 billion by 2022.”