AVEVA Strengthens Its APM Portfolio With The Acquisition Of MaxGrip’s Software Assets
On April 5, 2019, AVEVA announced its intent to acquire the software business of MaxGrip, the Netherlands-headquartered asset performance management software and services vendor, pending approval from MaxGrip’s shareholders. MaxGrip was founded in 1997 and has offices in Australia, Germany, Malaysia, Singapore, Taiwan and USA. Its customers span a wide range of mostly asset-intensive industries such as oil and gas, food and beverages and infrastructure and utilities. At the time of the acquisition, MaxGrip had approximately 170 employees compared to 4,400 at AVEVA. Verdantix estimates that the MaxGrip software business (not the entire firm) was valued at between €12 million and €17 million. Thirty MaxGrip software employees are expected to join the AVEVA team post acquisition.
AVEVA, which merged with the industrial software business unit of Schneider Electric in March 2018 is one of the largest vendors of industrial software with over 50 years’ experience and more than 16,000 customers, including Chevron, Eskom Holdings, Mitsui Group and South African Mint. It is also one of the most prominent vendors in the APM software market with market-leading capabilities for condition-based monitoring to provide asset-level health data. AVEVA and MaxGrip have had a strategic partnership since October 2017. The partnership has enabled AVEVA to offer a comprehensive enterprise APM solution to its customers by including APM assessment services and reliability centred maintenance software within its APM product portfolio.
Driven by Industry 4.0, the APM software market is entering a new phase of growth and the acquisition of MaxGrip’s APM software will strengthen AVEVA’s offerings, especially in terms of adding to its asset master data. MaxGrip has a rich library of over 900 critical asset types with failure causes and conditions to predict impending failures. A differentiating element about the library is that it suggests relevant remedial actions to rectify the problem based on best practices. For customers such as American Electric Power, BASF, TATA Power and Total already using AVEVA’s predictive and prescriptive maintenance, this out-of-the-box access to failure modes and prescriptive maintenance plans will certainly be a value-add. The acquisition is a step in the right direction by AVEVA to take advantage of the expanding APM software market.