Writing Our Next Chapter
I am excited to announce that we at PAS Global, LLC have agreed to be acquired by Hexagon AB, a global leader in sensor, software, and autonomous solutions.
Since I started PAS in 1993, we have been passionate about our mission to deliver software solutions to enhance industrial process safety, reliability and, since 2011, operational technology (OT) cybersecurity. I couldn’t be prouder of what we have accomplished with our two product lines, PlantState Integrity and Cyber Integrity, which have achieved top leadership positions for alarm management and OT cyber asset management. This is no small feat in a highly competitive market.
The two primary markets we serve – industrial process safety and OT cybersecurity – are in greater demand than ever before, with OT cybersecurity presenting the largest market opportunity for growth as malicious actors target industrial facilities with increasing regularity and digitalization expands the attack surface. With a small fraction of the OT cybersecurity market claimed, and one leading analyst firm putting the market opportunity for OT cybersecurity solutions at more than $5 Billion, the cybersecurity needs of the market are very significant.
Recognizing this unique opportunity to lead in a fast-growing market with a tremendous customer need (a recent PAS survey showed only 15% of organizations are highly prepared), we initiated a capital raise process late last year. This included potential financial and strategic investors. When we started the raise, we had no intention of being acquired. But late in the process, more than one of the strategic investors approached us about acquiring 100% of PAS.
As the founder of the company, I had a tough decision to make – raise capital to invest and grow as an independent company – as we have for 27 years – or join forces with a leading global industrial software company to achieve our vision even faster. After considerable analysis, we chose the acquisition path as it provides for 1) greater value to our customers and 2) greater growth opportunities for our employees.
The decision to combine with Hexagon, once we decided to go the acquisition route, was an easy one. While the other strategic investors were all amazing companies, with great technologies, and capable leadership teams, we selected Hexagon because there was the greatest cultural and technology alignment between our two companies. Employees have always come first at PAS and so the cultural alignment, for me, was just as important as technology alignment.
Hexagon’s mission is “putting data to work to enable autonomous, connected ecosystems that boost efficiency, productivity and quality for customers.” This mission and our mission for ensuring OT integrity are closely aligned, creating a natural strategic fit between our two companies.
For more than 27 years, we each have delivered great value to our global customers. We now see significant opportunities for providing even more value to our mutual customers by offering a comprehensive portfolio for managing the entire industrial lifecycle from plant design and maintenance, to real-time situation awareness in the control room, OT cybersecurity risk management, and industrial digital transformation.
We will continue to offer all PAS software, consulting and support services. Additionally, Hexagon plans to invest more in PAS technology to accelerate and substantially increase the value delivered to our customers.
After the acquisition is complete, I will be taking on a new role as Founder and Advisor to the President of Hexagon PPM. In my new role, I will focus on spending time with our customers, listening to them, and deepening relationships. I will also identify new transformative solutions that will leverage the PAS and the Hexagon platforms to accelerate the delivery of the autonomous future.
The acquisition will represent a new cybersecurity-focused business segment within Hexagon’s PPM division, which will also provide opportunities with other Hexagon divisions. Our process safety solutions will be integrated into Hexagon’s PPM owner operator line of business. This will provide the alignment and support to enable both areas of our business to continue to serve our customers.
Completion of the transaction (closing) is subject to standard regulatory approvals.
Please see the links below for more information about Hexagon and this strategic announcement:
- Hexagon Home Page
- Hexagon PPM Division
- PAS press release
In closing, I’d like to share two quotes. One from Peter Drucker, whose insights on managing a business I have valued for decades. The other from Patrick Lencioni, whose guidance on building high-performing teams I use daily.
“The best way to predict the future is to create it.” – Drucker
“Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare.” – Lencioni
I am tremendously excited about the future for PAS with Hexagon. We are creating a better future together to help our customers and teamwork is what will differentiate us the most.
I look forward to continuing this journey with you, our valued customers, partners, and industry colleagues.
Founder and CEO
PAS Global, LLC