ServiceMax, a company The company, which makes software for the field-service industry, announced yesterday that it will go public through a Special Purpose Acquisition Company, or SPAC, in a deal valued at $1.4 billion. ServiceMax was sold to GE for $915 million in 2016, before being liquidated at the end of 2018, the company recently raised $80 million from Salesforce Ventures, a major partner.
Broadly speaking, ServiceMax has a history of modest growth and cash consumption.
ServiceMax primarily competes with ServiceNow in the growing field-services industry, and interestingly enough given Salesforce Ventures’ recent investment, Salesforce Service Cloud. Other large enterprise vendors such as Microsoft, SAP and Oracle also have similar products. The market helps digitize traditional field service but also touches on in-house service like IT and HR giving it a wider market in which to play.
GE originally bought the company as part of a growing industrial Internet of Things (IoT) strategy at the time, hoping to have a software service that could work hand-in-hand with the automated machine maintenance it wanted to implement. was. When that strategy failed to materialize, the company spun out ServiceMax and remained part of Silver Lake Partners, which was finalized in 2019.
ClearTips was curious why that was, so we dug into the company’s investor presentation for more clues about the company’s financial performance. Broadly speaking, ServiceMax has a history of modest growth and cash consumption. However, it promises a major change in that story. Like this
a look at the figures
The company’s pitch to investors is that with the new capital it can accelerate its growth rate and begin generating free cash flow. To get there, the company will pursue organic (in-house) and inorganic (acquisition-based) growth. The company’s blank-check combination will provide what the company describes as “$335 million in gross income,” a hefty amount for the company compared to its most recent funding round.