GE Vernova announced Thursday it will sell its Proficy industrial software unit to private equity firm TPG for $600 million, with plans to reinvest the proceeds into its grid software business.
Proficy, which represents about 20% of GE Vernova’s electrification software revenue, helps manufacturers monitor and optimize production. In 2024, the company’s electrification segment generated $7.55 billion in revenue.
The sale comes as GE Vernova, spun off from General Electric last year, works to manage higher costs tied to tariffs and inflation. The company has projected an additional $300–$400 million in costs for 2025 and is raising prices and streamlining operations to protect margins.
CEO Scott Strazik said at a Morgan Stanley conference that while Proficy is a valuable business, GE Vernova sees more strategic upside in grid-focused technology. “Indirectly, we are going to reinvest the proceeds into the grid software business,” he said.
Deal Details
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The transaction is expected to close in the first half of 2026.
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TPG will acquire and control Proficy through TPG Capital, its U.S. and European private equity platform.
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GE Vernova will retain a board observer seat and could receive additional proceeds depending on future outcomes and conditions.
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The sale will establish Proficy as a standalone software company under TPG ownership.
Market Context
Analysts said the divestiture reflects GE Vernova’s efforts to monetize undervalued assets while channeling resources into growth areas like grid modernization. RBC Capital Markets analyst Christopher Dendrinos called the move “strategic,” noting the strong demand for manufacturing and electrification investments.
Shares of GE Vernova fell 3.2% to $622.77 after the announcement.
The company is also boosting its supply chain capacity, including a $600 million upgrade to U.S. factories announced in January, to keep pace with rising global electricity demand.