May 5, 2010

Global power and automation technology company ABB will acquire major software, data and advisory services provider Ventyx for more than $1 billion from Vista Equity Partners. ABB’s strategy is to combine its related network management business within the Power Systems Division, with Ventyx as a single unit for energy management software solutions. The acquisition triples the energy management software market for ABB and plants the company firmly as a leading software solutions provider for managing energy networks.

Quick Take: Whenever we talk to mid-sized Smart Grid companies these days, the executives whisper that they have received multiple tire-kicking visits from bigger companies working on a Smart Grid strategy. Size, scale, breadth of product and “stamina” matter in most markets, but particularly when selling to utilities with their ultra-long sales cycles.

So you can expect many more announcements like this one. The challenge for all of them is making the deal pay off by successfully merging two cultures and two technical approaches. ABB and Ventyx have two very different cultures, for instance. We wish them well in bringing their two worlds together. If they can solve that part, the combination could be a win for both sides and a threat to Oracle’s ambitions.

Source: Smart Grid: Smart Grid Strategy: ABB to Grow Energy Management Software Market Access With Ventyx Acquisition.

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