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GE Vernova to Sell Proficy to TPG for $600 Million, Refocus on Grid Software

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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

  • The transaction is expected to close in the first half of 2026.

  • TPG will acquire and control Proficy through TPG Capital, its U.S. and European private equity platform.

  • GE Vernova will retain a board observer seat and could receive additional proceeds depending on future outcomes and conditions.

  • 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.

Intel Weighs Sale of Networking and Edge Unit in Strategic Refocus Under New CEO

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Intel is considering divesting its networking and edge computing division — previously known as NEX — as part of a broader strategy to streamline operations and refocus on its core strengths in PC and data center chips, according to sources familiar with internal discussions.

Under new CEO Lip-Bu Tan, the tech giant is evaluating the relevance of its diverse business units to prioritize areas where it maintains market leadership. Tan emphasized at an event in Taipei that Intel commands 68% of the PC chip market and 55% of the data center chip market, and plans to “expand and build on” those domains.

Although no formal sale process has been launched yet, Intel has initiated early-stage discussions, spoken with third parties potentially interested in the NEX business, and interviewed investment banks to possibly advise on the transaction. However, no advisor has been officially retained, and options remain open.

Sources indicate that the networking and edge unit — which generated $5.8 billion in revenue in 2024 — is no longer seen as essential to Intel’s growth plans. The company now folds NEX’s financials into its broader PC and data center segments, eliminating separate reporting.

The telecom-focused segment within NEX is especially seen as misaligned with Intel’s new direction, and competitors like Broadcom dominate significant parts of the networking market, further reducing Intel’s strategic incentive to compete there.

While Intel has not committed to a full divestiture, it may explore partnerships, stake sales, or restructuring alternatives. The potential NEX sale follows other recent portfolio adjustments — notably, the $4.46 billion sale of a majority stake in its Altera unit to SilverLake in April. That move came after previously planned IPO ambitions for Altera under former CEO Pat Gelsinger.

Despite this refocusing, Intel continues to face pressure as it loses ground in the PC and data center markets, making Tan’s efforts a critical pivot point for the company’s future trajectory.

ByteDance and TikTok Seek Emergency Halt of U.S. Ban Pending Supreme Court Review

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China-based ByteDance and its subsidiary TikTok have filed an emergency motion with the U.S. Court of Appeals for the District of Columbia, seeking a temporary halt to a law that mandates ByteDance divest TikTok in the United States by January 19, 2024, or face a ban. The request aims to delay enforcement while the companies pursue a review by the U.S. Supreme Court.

TikTok argued that without intervention, the law would “shut down TikTok—one of the nation’s most popular speech platforms—for its more than 170 million domestic monthly users” just before the presidential inauguration. The platform’s closure would severely impact its value to ByteDance and its investors and harm businesses reliant on TikTok for advertising and sales.

On Friday, a three-judge panel upheld the law requiring ByteDance’s divestiture. The company is now racing against time, urging the appeals court to rule on its emergency request by December 16.

TikTok’s Legal and Political Maneuvering

ByteDance and TikTok emphasized the potential for the Supreme Court to reverse the lower court’s decision, arguing that this likelihood justifies a temporary pause. They also highlighted the incoming administration of President-elect Donald Trump, who has expressed opposition to the ban.

Trump has previously stated he would not allow a TikTok ban, noting the platform’s immense popularity. His incoming national security adviser, Mike Waltz, reinforced this position, emphasizing the importance of protecting user data while maintaining TikTok’s availability to Americans.

The timing of the decision could also allow President Joe Biden to grant a 90-day extension of the divestiture deadline before Trump assumes office on January 20. However, TikTok must demonstrate substantial progress toward divestiture to qualify for such an extension.

Concerns Over Data Security and Service Disruption

The law, part of broader U.S. concerns over foreign-owned apps, grants sweeping powers to ban platforms over data privacy risks. TikTok warned the decision would not only impact its U.S. user base but also disrupt services for millions of users outside the country. Hundreds of U.S. service providers supporting TikTok’s operations, including maintenance and updates, would no longer be able to perform these functions starting January 19.

This case highlights ongoing tensions between the U.S. government and Chinese tech companies over data security and national sovereignty. Similar efforts to ban Tencent’s WeChat in 2020 were blocked by the courts, demonstrating the complexities of enforcing such measures.

The Justice Department, meanwhile, has urged the appeals court to deny TikTok’s request quickly to allow sufficient time for Supreme Court consideration.