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.