PTC is acquiring field service SaaS platform ServiceMax. PTC is aiming to strengthen its closed-loop product lifecycle management (PLM) capabiities and extend them downstream into enterprise asset management (EAM) and field service management (FSM).

ServiceMax provides a suite of cloud-native FSM capabilities built on the Salesforce platform. These capabilities include managing information about serviced products – product description, serial number, service history – creating and managing work orders, and scheduling and dispatching technicians. ServiceMax’s FSM capabilities are integrated with Salesforce’s customer relationship management (CRM) system.

PTC and ServiceMax have been partners since 2015. Both companies support manufacturers of highly complex and configured products for industrial products, medical devices, aerospace and related vertical industrial sectors.

ServiceMax’s FSM capabilities will complement PTC’s digital thread portfolio. This includes ServiceMax’s FSM accessing product definition data from PTC’s Creo and Windchill platforms, technical publishing from PTC Arbortext, service parts management PTC Servigistics, and IoT and digital twin capabilities from PTC’s ThingWorx. PTC Vuforia also provides ServiceMax with augmented reality (AR) capabilities.

According to PTC, integration of the two platforms allows customers to have remote monitoring by ThingWorx alert customers to proactively detect service needs and automatically generate service orders. Field service engineers can use 2D work instructions from PTC Arbortext or 3D AR work instructions created in PTC Vuforia derived from the product’s digital product definition information created in Creo and managed in Windchill. Technicians can also use a better informed understanding of service activities to improve spare parts inventory with Servigistics. 

“The addition of ServiceMax will realise a key part of PTC’s closed-loop PLM strategy,” said Jim Heppelmann, President and CEO, PTC. “The PLM capabilities PTC has long offered to engineering and manufacturing departments provide the system of record for the digital definition of any product configuration. ServiceMax will complement this by providing the system of record for monitoring and servicing product instances after they leave the factory and move into customer use. Upon completion of this acquisition, PTC will have the unique ability to complement the full digital product definition from our computer-aided design (CAD) and PLM solutions with detailed usage information from our internet of things (IoT) solutions and the complete service history from ServiceMax. PTC is poised to be the only company that will be able to offer manufacturers this comprehensive view of their products at each stage of the lifecycle.” 

“ServiceMax and PTC have a longstanding relationship rooted in the common profile of our customers, the natural synergies of our products, and a shared understanding of the importance of product data at different stages of the lifecycle,” said Neil Barua CEO, ServiceMax. “PTC has a strong and consistent track record of success, and now following the growth and innovation we’ve achieved during our partnership with Silver Lake, we’re excited for the ServiceMax team to strengthen the service offerings of PTC’s digital thread and closed-loop PLM portfolio.”

The purchase price will be funded in two stages, with $808 million paid at closing and $650 million paid in October 2023. The transaction will be funded with cash on hand, borrowings under PTC’s existing credit facility, and a new $500 million committed term loan. 

ServiceMax is expected to generate approximately $160 million in ARR for PTC’s Q2’23.