Machines that transmit messages when they need repairs, remote monitoring and reducing hospital acquired infections. Those are a handful of healthcare applications from the growing sector referred to as the Internet of Things. ThingWorx, a Philadelphia area company that is collaborating with several businesses across many sectors, including life science industry companies, is the target of a deal valued at up to $130 million.
PTC Inc. (NASDAQ: PTC), a Needham, Mass., software developer, made the acquisition, according to a company statement. The medical device industry is one of several industry sectors both companies serve. The terms of the deal include $112 million up front and another $18 million if ThingWorx achieves certain milestones.
PTC will use the ThingWorx platform to speed the creation of high-value Internet of Things applications that support manufacturers’ service strategies, such as predictive maintenance and system monitoring. “All aspects of our strategy to date have centered on helping manufacturing companies transform how they create and service smart, connected products,” PTC president and CEO Jim Heppelman said in the statement.
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In an interview earlier this year, ThingWorx Marketing Director Chris Kuntz said the evolution of machine-to-machine communication is also leading to new ways to build value with its platform across biotechnology and next-generation genomics to remote monitoring for patients and reducing hospital-acquired infections.
One of the companies to benefit from the acquisition is Safeguard, which holds a 40 percent ownership stake in ThingWorx. The company expects to see a big return for the $10 million in cash it deployed in ThingWorx, according to a statement on its website.
Heppelmann said: “With this acquisition, PTC now possesses an innovation platform that will allow us to accelerate how we help our customers capitalize on the market opportunity that the Internet of Things presents.”
PTC develops software for manufacturers. In the realm of healthcare, it helps medical device manufacturers with regulatory compliance, such as the unique device identifyer rule, scheduled to go into effect next year.
