Siemens plan to acquire PSE, delivering a return of c.10x for the Albion VCTs
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.
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.
PSE’s model-based solutions span the entire process lifecycle via a unified and integrated set of tools. These strongly complement the Siemens portfolio in the process industry sector, and will further strengthen Siemens' position as a leading provider of digitalization technologies.
Eckard Eberle, CEO of the Siemens Process Automation Business Unit says "The combination of high-fidelity predictive models and process data plays an increasingly important role in the digitalization of design and operations in the process industry. It is important to take the process knowledge that is already available in product and process development and to map it in predictive models which can then be used to add value in the digitalization environment in every step of the lifecycle. With PSE we will be even better equipped to meet the specific requirements of our process industry customers."
Costas Pantelides, Managing Director of PSE, says: "We are delighted to become part of the Siemens organization. Our technology and know-how are highly complementary to Siemens’ products, and our combined portfolio will build on Siemens’ already strong position in digitalization 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."
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.