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Siemens $1.6 Billion Acquisition Of Brightly Software Points To Rejuvenation Of Opportunities In The Mature EAM Software Market

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Siemens $1.6 Billion Acquisition Of Brightly Software Points To Rejuvenation Of Opportunities In The Mature EAM Software Market

On June 27, 2022 Siemens Smart Infrastructure acquired Brightly Software, the US-headquartered provider of asset maintenance management solutions for a whopping $1.575 billion, nearly 10x Brightly’s annual revenues. This acquisition signifies a larger transformation taking place within the enterprise asset management (EAM) software market. Long dominated by incumbents such as IBM, SAP and Oracle, a series of acquisitions of mid-sized CMMS firms and larger EAM software suppliers by established firms in adjacent markets, as well as the development of new EAM solutions by start-ups, has facilitated the entry of several new players in the space.

 Accruent’s acquisition of CMMS software vendor Maintenance Connection in 2018 was quickly followed by Fortive’s acquisition of the Connected Portfolio Intelligence Platform (CPIP) solution provider in the same year. In July 2021, Thoma Bravo acquired CPIP, CMMS and EAM solution provider iOFFICE, merging it with SpaceIQ. In October 2021, Hexagon acquired Infor’s EAM business for $2.8 billion. The emergence of more lightweight, industry-targeted EAM software has also diversified the market, such as UpKeep, which was established in 2014, and has over 4,000 global customers, while MaintainX, founded in 2018, raised $36 million in funding in 2021. 

Siemens acquisition comes after Brightly’s own acquisition spree. Backed by investment firm Clearlake Capital since 2019, Brightly absorbed both Australian asset investment planning (AIP) software provider Assetic and UK-based asset management software firm Confirm in 2020, as well as ESG reporting solution provider Energy Profiles Limited in 2022. In the 2022 Verdantix Green Quadrant benchmark of key EAM software providers, Brightly emerged as one of the leaders

Brightly’s software portfolio across EAM, CMMS and energy management, along with its customer base in education, government, life sciences and manufacturing, makes it an attractive proposition for Siemens. For Siemens, coupled with its recent acquisition of predictive maintenance software provider Senseye in June 2022, the move expands the functionality and reach of its asset management software offerings with industrial and non-industrial customers. Both Brightly as well as Senseye’s acquisitions help distinguish Siemens from competitors through an increased expertise in digital solutions alongside its core engineering, services, and manufacturing offerings.

Siemens entry into the EAM software space, alongside Hexagon’s, evidences the huge opportunity in the EAM space, despite the maturity of the market. Verdantix forecasts the EAM software market to reach $5.4 billion in 2026.

For more information on asset management digital solutions please visit the Verdantix Operational Excellence website.
 

 

Hugo Fuller

Industry Analyst

Hugo is an industry analyst in the Verdantix Operational Excellence practice. His research agenda explores the technologies within the extended reality and connected worker market, alongside enterprise asset management software. In advisory, his work includes go-to-market, growth strategy and long-term research partnerships.