Siemens Acquires Process Systems Enterprise (PSE) To Expand Its Digital Solution Portfolio For Process Industries
On September 16, 2019, Siemens announced its plan to acquire Process Systems Enterprise (PSE), the UK-headquartered £17 million ($21 million) revenue advanced process modelling software and services provider. The transaction is expected to be completed in the fourth quarter of 2019 with PSE being integrated into the Process Automation Business Unit of Siemens Digital Industries. Terms of the deal were not disclosed. Based on the size of the PSE business which had around 160 employees and standard financial metrics, Verdantix estimates PSE was acquired for between £39 million and £58 million.
PSE was founded in 1997 and has offices in Japan, Korea, The Netherlands and United States along with agencies in China, Malaysia and Taiwan. Its products and services are targeted at firms in process industries such as chemicals, oil and gas, petrochemicals, pharmaceuticals, power generation and wastewater. Publicly disclosed PSE customers include BASF, ConocoPhillips, P&G, Shell and Total. Siemens and PSE have had a strategic partnership since June 2018. The partnership has enabled the development of high-fidelity model-based solutions for plant performance monitoring and forecasting, real-time process optimization and operator training simulation.
Digital twin technology that simulates the performance of industrial facilities using high-fidelity physics-based modelling as well as advanced algorithms have come to the fore in the past 24 months. According to the Verdantix global survey of 284 managers responsible for operational excellence, 94% highlighted digital twins as either ‘very significant’ or ‘significant’ for their firm’s operational excellence initiative in the next two years. Industrial process and manufacturing data are complex with multiple variables impacting the outcome. The biggest value add of a digital twin is its ability to perform complex calculations in real-time using machine learning to predict and prevent process disruptions, detect production anomalies, undertake what-if analysis and provide early warnings.
Verdantix believes that this acquisition will boost the already expansive Siemens process automation solution portfolio, especially in the areas of process analytics and optimizing plant management throughout its lifecycle.