(Reuters) – General Electric (GE.N) on Thursday said its digital unit would be the sale of a majority stake in ServiceMax, a cloud-based provider of software used in the inventory and workforce management, technology-focused private equity investor Silver Lake.
GE will retain a 10 percent equity in ServiceMax, a company acquired for $915 million in 2016. (few.rs/2PAJ2Gh)
Financial terms of the deal were not disclosed, and the companies expect the transaction in the beginning of 2019.
As a separate company, ServiceMax would pursue new strategic partnerships, Silver Lake said.
GE spent more than $4 billion building the digital business and aimed to become a “top-ten” software company under former Chief Executive Officer Jeff Immelt.
GE last year narrowed the focus on the own industrial equipment and said that it would consider the sale of an interest in ServiceMax.
Morgan Stanley & Co LLC Silver Lake financial advisor and Skadden, arps, Slate, Meagher & Flom LLP is its legal adviser.
Reporting Rachit Vats in Bangalore and Alwyn Scott in New York; Editing by Shounak Dasgupta