Industrial software company AVEVA is to acquire US digital solutions firm OSIsoft for $5bn.

AVEVA and OSIsoft will combine their products, bringing together industrial software and data management to help customers in energy, industrial and other organisations accelerate their digital transformational strategies as efficiency, flexibility, sustainability, and resilience become increasingly urgent requirements for customers.

OSIsoft’s data management software will complement AVEVA’s end-to-end engineering, operations and performance offerings.

Craig Hayman, AVEVA chief executive, said: “Data has been enabling organizations to more effectively determine the cause of problems by allowing them to visualize what is happening in different locations, departments and systems.

“This agreement will enable our customers to improve business processes as well as eliminate inefficiencies. We are extremely proud to be moving into the next chapter with an even stronger solutions portfolio as well as an ever-increasing and robust customer base which continues to make us leaders in our sector.”

In a statement, the companies said incorporating OSIsoft’s PI System into AVEVA’s software portfolio will create an integrated data foundation that can drive big data, cloud and AI-driven insights to create meaningful business outcomes for customers.

“This combination enables AVEVA to grow and diversify the industries it serves as well as continue to expand its footprint in existing and new markets and geographies.”

OSIsoft’s PI System enables customers to collect, normalise, store, and stream real-time, high-fidelity operational data to applications, analytics, and AI and ML platforms.

PI System acts as a single system of record for operations data, designed for massive cloud-enabled scale and data sharing across enterprises, and enables insightful operations decision making.

OSIsoft works with over 1,000 of the world’s leading power and utilities companies, 38 of the Global Fortune Top 40 oil and gas companies, all of the Global Fortune Top 10 metals and mining companies, 37 out of 50 of the world’s largest chemical and petrochemical companies and 9 out of 10 of the Global Fortune Top 10 pharmaceutical companies.

OSIsoft founder and chief executive J. Patrick Kennedy said joining forces with AVEVA “enhances and extends our ability to deliver on our key commitments to our customers, partners and employees”.

“Together we will be better able to service the largest digital transformation projects in history, including across industry 4.0+ and IIoT. AVEVA’s interest in OSIsoft is a testament to our talented team, and the extraordinary value of the PI System as the real-time streaming data infrastructure that powers the industrial world.