ABB has just announced that it is acquiring Ventyx, an energy management software provider, for more than $1 billion cash. The purchase is pending regulatory approvals and should be complete by the second quarter of 2010.
In a press release, Joe Hogan, ABB’s CEO, explained why purchasing Ventyx should be advantageous for ABB:
“The big advantage for energy companies, utilities and industrial customers is that they will now have a single supplier of enterprise-wide information technology platforms and power automation systems. The advantage for our shareholders is a cash-generating acquisition in an exciting growth market, with a strong management team, a highly complementary offering and geographic scope, and an attractive return on capital employed.”