Mendix, a digital transformation company, has been acquired by Siemens AG in a deal worth $730m in cash.
This comes alongside a ‘significant multi-year’ investment to accelerate R&D innovation and the global footprint of the companies.
The acquisition was made following discussions between the copmanies on the ways they could benefit each other, with three areas being outlined as potential growth through a deal. The first was an ability to double down on R&D investment and international expansion. As part of Siemens, Mendix will be able to access a greater investment than it would going public and will also get instant access to a global infrastructure.
By combining the companies, they could create a digital operating system which can bridge with the physical world and support the billions of intelligent devices and machines connected to the cloud.
A final area for growth is the development of Mendix. Being a part of Siemens gives the company access to deep industry know-how, network and expertise, which will enable it to operate within a range of industries.
Following the deal, Mendix customers will still access the same solution, but with increased innovation.
Boston-headquartered Mendix is a digital transformation company which provides enterprises with multi-channel apps, multi-could deployment, security tools, smart and connected technology and devops, among others. Financial institutions, such as ING and Royal Bank of Scotland, use Mendix to automate workflows, originate loans, regulation compliance and fraud management.
Insurers use the company’s technology for claims processing, broker workflow automation, renewals and pricing and rating.
In a blog post Mendix co-founder and CEO Derek Roos said, “I believe we are at yet another inflection point in our industry.
“As the world around us gets increasingly connected, organisations are facing increasing challenges to cope with vast amounts of data and customers are increasingly expecting entirely new experiences and interactions.
“New technologies like VR, IoT and AI will drive an incredible convergence between the digital and physical worlds, creating entirely new industries and business moments in which people, data, businesses and things work together, dynamically.
“This, once again, will put more pressure on business/IT organizations to adapt and change how apps are built and consumed, in ways that few can comprehend right now. And just like we’ve done for web and mobile applications, we also intend to set the direction and lead the market for our customers in this new era.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
