GE to sell its majority stake in cloud-based service provider ServiceMax

GE will however retain a 10% equity stake in ServiceMax, a business that it acquired in 2016 for $915 million.

General Electric Co stated, its digital unit will be selling its majority stake in cloud-based service provider ServiceMax. GE will sell its stake to private equity firm Silver Lake.

However, GE will retain a 10% equity stake in ServiceMax, a business it acquired for $915 million in 2016.

The financial terms of the deal have not been disclosed.

The transaction is expected to close in early 2019.

In a statement, Silver Lake stated, as a separate company ServiceMax would be free to pursue new strategic partnerships.

Under former CEO Jeff Immelt, GE spent more than $4 billion building up its digital business and aimed at joining the ranks of the “top-ten” software companies in the U.S.

In 2017, in a strategic move GE had narrowed its focus to its own industrial equipment and stated it would consider selling an equity stake in ServiceMax.

Morgan Stanley & Co LLC was Silver Lake’s financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP its legal adviser.

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