ABB Buys Ventyx for $1Billion plus
Posted on Ventyx’s website…
Zurich, Switzerland, May 5, 2010 – ABB, the global power and automation technology group, has agreed to acquire Ventyx for more than $1 billion from Vista Equity Partners to become a leading provider of software solutions for managing energy networks…ABB will combine its related network management business within the Power Systems division, with Ventyx to form a single unit for energy management software solutions. By providing ABB with broader access to the utility enterprise management market, the acquisition triples the energy management software market available to ABB.
According to the press release, Ventyx’s revenues in 2009 were $250 million. Given that number, the purchase price seems somewhat high. However, given ABB generation focus, perhaps the company sees solid leverage with their products and the emerging smart grid markets.
From a CTRM perspective, this acquisition does raise questions as to what ABB will do with the Ventyx’s ETRM products, particularly what Ventyx now calls TRM, previously known as Monaco. Rumors have been floating around in recent months that Ventyx had essentially stopped selling the product and was moving away from ETRM to focus exclusively on utility operations, power distribution, and related markets. Its yet to be seen if ABB will try to reinvigorate that product and become more competitive in the wider ETRM space. Its probably unlikely that ABB would choose to go head to head with the global multi-commodity CTRM players, as the TRM product is essentially limited to gas and power functionality. Still the TRM/Monaco product has been around for years and is a functionally mature product that, with updating, could compete effectively within the wholesale gas and power markets.
We’ll keep watching this one…