We are delighted to announce that Siemens AG has announced plans to acquire Process Systems Enterprise (PSE), the leading supplier of Advanced Process Modelling (APM) software and services.
PSE built a category leading industrial software business, and the excellent return is driven by a combination of strong growth (10X software revenue since AlbionVC’s initial investment) with top decile capital efficiency - little more than the £2m invested by AlbionVC raised by the company over its lifetime. The exit represents a return of c.10x for the Albion VCTs.
Process Systems Enterprise (PSE), the leading supplier of predictive Advanced Process Modelling (APM) software and services to many of the world’s largest companies, including 60 Fortune 500 firms, is exiting the AlbionVC portfolio to join Siemens AG in Q4 this year, for an undisclosed amount.
PSE’s advanced process models are used within digital R&D, design and operations in the process industries to help make fast, safe and more efficient decisions through rapid and effective exploration of the decision space. The technology is widely used in the chemicals, petrochemicals, pharmaceuticals and food industries to accelerate innovation, improve process design and operation, streamline R&D and manage technology risk.
Siemens and PSE have been collaborating closely within a strategic partnership since June 2018, developing new model-based solutions for diverse high-value applications including detailed unit operation design, plant monitoring and performance forecasting, soft sensing, nonlinear model-predictive control and real-time optimisation. With the acquisition, the 160-strong PSE operation will be integrated into the Process Automation Business Unit of Siemens Digital Industries and the current PSE management team will remain in place.
Costas Pantelides, Managing Director of PSE, says: "We believe becoming part of the Siemens organisation is a perfect fit for PSE. Our technology and know-how are highly complementary to Siemens’ products, and our combined portfolio will build on Siemens’ already strong position in digitalisation to deliver unprecedented benefits to customers. We are also very pleased to have delivered this successful outcome to our shareholders. We are grateful to Albion, and to Robert Whitby Smith in particular, for providing us with the necessary funding at a crucial point in our evolution, and for their strong support and solid advice over the years.”
Robert Whitby-Smith, Partner, AlbionVC, says: “It has been a pleasure to partner with Team PSE. PSE has built the leading team, culture and IP in advanced process modelling software, reflected in the 10X software revenue growth since we invested and the 10X return to our shareholders. We wish Costas Pantelides and Team PSE the best of luck in the next stage of their journey. PSE fits strongly with Siemens’ powerful vision and passion for technology and I believe PSE will be a force multiplier for Siemens in their mission to digitise the Industrial sector.”