AlbionVC, the technology investment arm of Albion Capital Group, has reported today that Siemens plans to acquire portfolio company, Process Systems Enterprise (PSE), a UK-based Advanced Process Modelling (APM) software and services business. The exit represents a return of c.10x for the Albion VCTs.
According to Crunchbase, PSE has raised just over $3m from a 2007 funding round with Albion listed as its lead investor.
“The excellent return is driven by a combination of strong growth, with 10 times 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,” said the venture investor.
According to Harry Forbes, Head of Research, Automation, at Arc Advisory Group, Siemens plans to purchase 100 percent of the share capital of PSE and to integrate its business into the Business Unit Process Automation, which is part of Siemens Digital Industries.
Siemens has already been working with PSE successfully since June 2018 within a strategic partnership.
According to Forbes’ report, as part of this initiative, new model-based solutions have been developed: for plant performance monitoring and forecasting, soft sensing, real-time optimization, nonlinear model-predictive control and operator training based on detailed process models.
“These solutions are based on the combination of process models, which contain in-depth process knowledge, with real-time and historical process data. This provides the plant operator with efficiency and effectiveness gains by improve-process control and maintenance planning, e.g. by predicting catalyst lifespans or coke build-up in furnaces,” wrote Forbes.
The technology is widely used in the chemicals, petrochemicals, pharmaceuticals and food and beverage industries to accelerate innovation, improve process design and operation, streamline R&D and manage technology risk.
The London-based company, founded in 1997, employs about 160 people worldwide. The deal is expected to make a final close by the fourth quarter of 2019. Both companies have agreed not to comment on the financial details of the transaction.