#PLEX SYSTEMS INSTALL#

Plex can integrate Rockwell's new SaaS acquisition, Fiix into its product line and cross-sell it to their install base.

The potential for Plex to move more upmarket by attaching to some of Rockwell's large enterprise customers in Rockwell's verticals.

The potential for Rockwell Automation to move further into Plex verticals like Tier 2/3 automotive suppliers, pharma, etc.

Plex's new modular product architecture and the ability to sell subsets of its suite should be an asset to Rockwell.

Rockwell can take advantage of Plex's considerable cloud operations knowledge and knowledge of building multi-tenant cloud apps, cloud applications development and cloud data center operations.

Rockwell should be able to introduce Plex into more geographies, more verticals and into its significant customer base.

Rockwell's extensive OT (operations technology) and plant/controller automation tools and technology tie well with Plex's IT and other technologies.

This is a material enhancement to Plex's predominately North American focused organization.

Plex will gain access to Rockwell Automation's extensive global sales and support network.

The accretive aspects of this deal include: Rockwell Automation should be able to get this debt financing on favorable terms given the low interest rates accompanying commercial borrowing today. The financing will be a mix of short and long-term debt. The price tag is $2.22 billion and this will be financed by a combination of $1.9 billion in debt and $300 million in cash on hand. The deal will be very complementary and should be accretive in a relatively short time. In their announcement of the sale this morning, Francisco Partners stated that: ' Plex More Than Quintupled Subscription Revenue Under Francisco Partners' Ownership.' There will be some celebrating at Francisco Partners today, for sure. Private equity firm Francisco Partners bought Plex in 2012. Plex had been shopped in prior years as prior owners entertained a sale as a potential liquidity event. Plex has developed deep manufacturing expertise in the automotive sector along the way. Many of their competitors only recently embraced cloud and/or multi-tenant cloud technology.

Plex literally wrote the book on cloud-based ERP, having been doing this since the late 1990s.

It came as a bit of a surprise to see the announcement that Michigan-based Plex Systems is being acquired by plant automation vendor Rockwell Automation today.

Plex systems