(Reuters) - General Electric Co (GE.N) on Thursday said its digital unit would sell a majority stake in ServiceMax, a cloud-based provider of software used in inventory and workforce management, to technology-focused private equity firm Silver Lake.
GE will retain a 10 percent equity in ServiceMax, a business it acquired for $915 million in 2016. (reut.rs/2PAJ2Gh)
Financial terms of the deal were not disclosed and the companies expect to close the transaction in early 2019.
As a separate company ServiceMax would pursue new strategic partnerships, Silver Lake said.
GE spent more than $4 billion building up its digital business and aimed to become a “top-ten” software company under former Chief Executive Officer Jeff Immelt.
GE last year narrowed the focus to its own industrial equipment and said it would consider selling an equity stake in ServiceMax.
Morgan Stanley & Co LLC was Silver Lake’s financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP its legal adviser.
Reporting by Rachit Vats in Bengaluru and Alwyn Scott in New York; Editing by Shounak Dasgupta