Uptake, a predictive analysis startup, just announced that they are going to buy Asset Performance Technology. While this may seem just one more acquisition in an endless series of tech acquisitions, the reality is that it can change the entire dynamics of the industrial industry.
Asset Performance Technologies controls a huge collection of industrial data on why industrial equipment fails. Both companies have been working on crunching data for companies with the goal of helping prevent and predict breakdowns, but they have been working in different areas. Uptake has specialized in using data to help industrial clients operate more efficiently. Asset Performance Technology has a huge list of history lessons that can help with the interpretation of the information.
Uptake currently has a market valuation around $2.3 billion. While the exact amount wasn’t released to the public, it’s easy to figure out that this is an acquisition that makes sense when both companies work in the industrial equipment area. This transaction makes even more sense considering that both companies are completely focused on specific sectors that include power plants, construction equipment, and factories.
Uptake has begun their services with Caterpillar and Berkshire Hathaway’s energy unit, among many others. Their main goal is to help companies to see all the information captured by the multiple sensors that are embedded on their industrial equipment. This information is critical for understanding why equipment failed and predict future failures.
On the other hand, Asset Performance Technology has been on the market for more 20 years. Their main goal has been to help their clients in the identification of any equipment that may be about to fail.
With this acquisition, Uptake is trying to make their learning technology smarter since it will have more data to process. This way, the company should be able to identify any possible problems in a more efficient way. According to Uptake’s President, Ganesh Bell, “The data is the real asset here, as well as the people that have built this curated database.”
Asset Performance Technology has been gathering massive amounts of data on almost 800 different pieces of industrial equipment from multiple industries. According to their calculations, they have cataloged more than 55,000 conditions that can easily identify that industrial equipment may be about to fail.
Both companies will continue to offer their own services independently, however, the goal is to integrate the two in the very near future.