GE Forms New Software Company in Overhaul of Digital Strategy

GE Forms New Software Company in Overhaul of Digital Strategy

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General Electric is creating an independent company for its software business, according to Bloomberg.

GE will retain ownership of the new operation, which will have about $1.2 billion of existing software revenue, according to a statement. GE Digital’s leader, Bill Ruh, will step down “to pursue other other opportunities” as part of the reshuffling.

The company also agreed to sell a majority stake in ServiceMax, a software provider it bought two years ago for $915 million, to technology investment firm Silver Lake. Terms of the latest deal weren’t disclosed.

The moves mark a major shift in GE’s digital strategy as new CEO Larry Culp tries to narrow the focus and pull the company out of one of the biggest crises in its 126-year history. Under former boss Jeffrey Immelt, GE had invested heavily to build a software business to complement its industrial machinery, even adopting the moniker “digital industrial company” to describe GE.

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