Manufacturing Software M&A Experts

Leading the Way in Manufacturing Software M&A Expertise

With an extensive record of over 20 successful manufacturing software M&A deals, our expertise in this sector is second to none. We’ve been at the forefront of this dynamic industry, recognizing the tailwinds driving its growth, including Digital Transformation, Industry 4.0 integration, and the maturation of sectors such as predictive maintenance (PdM) and prescriptive maintenance (RxM), and similar advancements. Our deep industry insights and strong network enable us to connect sellers with the most prominent buyers in the industry. Explore how our services can drive success for your manufacturing or industrial software company.

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Manufacturing Software Overview

The manufacturing software landscape has seen a significant shift in recent years, driven by the rapid adoption of Industry 4.0 technologies and the expansion of platform capabilities. This technological transformation has sustained a vibrant M&A environment within the manufacturing and industrial SaaS sectors.

The integration of AI, a standout in the software industry, has played a pivotal role in enhancing predictive and prescriptive capabilities across traditional software domains like ERP, EAM, MES, QMS, SCM, and beyond. This technology is poised to continue delivering significant benefits, enhancing efficiency, increasing productivity, controlling costs, and driving profitability.

Our in-depth analysis of the manufacturing and industrial software M&A landscape reveals that this sector has remained dynamic. Stay informed about these transformative industry trends by subscribing to our newsletter for the latest updates.

Manufacturing Software M&A Deal Volume

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Exploring the Diverse Technological Landscape of Manufacturing Software

We Group Manufacturing and Industrial Software Companies Into Five Main Categories:

Operations & Asset Management

Operations and Asset Management software companies have solutions focusing on optimizing manufacturing operations and managing and maintaining physical assets efficiently. It includes a variety of tools for production planning and scheduling, inventory management, maintenance management, and warehouse management. Some of the common SaaS categories include:

EAM/CMMS (Enterprise Asset Management/Computerized Maintenance Management System): Includes tools designed to effectively oversee and manage an organization’s physical assets, encompassing production machinery, vehicles, and facilities. Their focus is on maintenance, calibration, and optimization to enhance reliability, minimize downtime, and prolong asset lifespan, ensuring smooth operations.

MES (Manufacturing Execution System): Includes tools to facilitate real-time monitoring, control, and optimization of manufacturing operations on the shop floor. It ensures efficient production processes, improved quality control, and timely response to issues, ultimately enhancing productivity and agility in manufacturing environments.

QMS (Quality Management System): Includes tools designed to oversee and optimize quality control processes in manufacturing environments. It encompasses documentation, compliance, audits, and corrective actions, aiming to improve product and service quality, meet industry standards, and minimize errors and inefficiencies in the quality management workflow.

Supply Chain Management (SCM): Software tools used in supply chain management for manufacturing encompass a diverse range of applications, including inventory management systems, demand forecasting software, transportation management solutions, and vendor collaboration platforms, all aimed at optimizing the flow of goods and materials throughout the production and distribution processes.

Data Analytics & Business Intelligence

Data analytics and business intelligence software companies include solutions that help manufacturers make data-driven decisions. It involves collecting, analyzing, and visualizing data to gain insights into production processes, supply chain performance, and overall business operations.

Product Design & Development

This category includes software used in the early stages of manufacturing, such as PLM (product lifecycle management), CAD (Computer-Aided Design), and CAM (Computer Aided Manufacturing) software. It facilitates the design and development of products and their associated manufacturing processes.

Regulatory, Safety & Compliance Management

Companies within this category develop software solutions to help manufacturers adhere to industry regulations, safety standards, and Environmental, Social, and Governance (ESG) requirements. These platforms assist in compliance reporting, quality control, safety management, and Environmental, Health, and Safety (EHS) practices, mitigating the associated risks of non-compliance.

Automation, Control, Digital/Physical Connection

Automation and control software empowers manufacturers by automating processes, managing machinery, and bridging the physical and digital realms with SaaS solutions. This category includes manufacturing and industrial analytics, unified namespace management, OEE monitoring, and the software aspects of DCS, HMI, PLC, RFID, and SCADA systems. Data serves as the lifeblood of AI/ML, underpinning predictive and prescriptive operations, driving optimization across the physical/digital divide.

Empowering Software Executives with Valuable Insights into Manufacturing Software Buyers

The manufacturing software landscape has seen a significant transformation in acquisition dynamics, as shown in the charts below. Strategic buyers dominated historically, but private equity has surged forward, accounting for a remarkable 59% in 2022 and a commanding 65% in 2023, marking a clear shift.

This change can be attributed to several factors. Private equity, with an abundance of record dry powder at their disposal, is strategically positioning itself to capitalize on the enticing attributes of manufacturing software companies. The allure lies in the integration of Industry 4.0 technologies and AI, particularly in domains like EAM, MES, QMS, and SCM, which enhance predictive and prescriptive capabilities, offering immense potential for disruptive innovation.

This transformative landscape has witnessed significant deals by both strategic and private equity buyers. Examples include Siemens’ acquisition of Brightly Software and Rockwell’s purchase of Fiix, showcasing the evolving manufacturing software investment scene. With a substantial total addressable market (TAM) reinforcing the sector’s appeal, private equity investors and strategic buyers flock to explore lucrative opportunities.

2023 YTD Manufacturing Software M&A Activity by Buyer Type

Historical Manufacturing Software M&A Activity by Buyer Type

Non-Private Equity Driven Deals

Private Equity Buyers

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Digital Transformation and Operational Efficiency

Economic pressures, labor challenges, and reshoring initiatives drive the need for operational efficiency.
Manufacturers are leveraging SaaS solutions to streamline operations and adapt to industry challenges.
Resiliency and redundancy in supply chains gain prominence in boardroom discussions.

Industry 4.0 Integration and Technological Advancements

Industry 4.0 technologies, such as IIoT, AI/ML, 3D printing, and augmented/virtual reality, transform industry practices.
Digital Transformation (DX) fosters a culture of technology adoption for tangible business solutions.
Predictive and prescriptive maintenance, Digital Twins, and SaaS/Cloud models enhance efficiency and data-driven decision-making.

Labor Challenges and the Rise of Next-Generation Solutions

A profound labor challenge emerges as experienced “baby boomers” retire, impacting knowledge retention.
Finding skilled replacements becomes increasingly difficult, particularly given the demands of modern Industry 4.0 factories.
Innovations like hands-free mobile solutions, augmented and virtual reality, and predictive maintenance address labor challenges.

Geopolitical Shifts and Supply Chain Resiliency

Geopolitical conflicts and supply chain disruptions highlight the importance of resiliency and redundancy.
Reshoring initiatives, influenced by federal legislation and supply chain concerns, reshape the industry.
Manufacturers explore ways to operate lean and efficiently, utilizing next-generation SaaS solutions to address macroeconomic pressures.

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Manufacturing Operations Management (MOM)

The industrial asset technology sector is more attractive than it has been in decades, and manufacturing operations management (MOM) software is a key reason why.

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Manufacturing Software Overview

This report includes a detailed analysis of the current state of manufacturing, industry tailwinds, drivers of software M&A in manufacturing, a deep dive into the technologies supporting manufacturing, a list of related software M&A transactions, key players within the space, notable transactions, and more.

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