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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.

Emerson Declares $265 Per-Share Bid for Aspen as “Best and Final”

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Emerson Electric (EMR.N) has stated that its $265 per-share offer for Aspen Technology (AZPN.O) is its “best and final” price. This announcement comes just days after activist investor Elliott Management revealed it had invested over $1.5 billion in Aspen, challenging the company’s decision to accept Emerson’s $7.2 billion tender offer.

UBS analysts highlighted that Emerson’s break price is around $202, though the exact value is difficult to pin down. The analysts noted that this makes the bid less likely to see further increases, as it relies on the assumption that Emerson would prefer to avoid a failed tender offer.

Emerson, which already owns 57% of Aspen, agreed last month to acquire the remaining shares of the industrial software supplier. The all-cash tender offer is set to expire on March 10, provided that the minimum number of shares are tendered by that date.

Cognite to Relocate Headquarters to U.S., Citing Regulatory Challenges in Europe

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Norwegian industrial software company Cognite announced plans to move its headquarters to the United States this year. The shift is aimed at capitalizing on the growing markets in North America, Asia, and the Middle East. Co-founder John Markus Lervik shared the decision at the Reuters Global Markets Forum, noting that Europe’s regulatory environment was impeding the company’s growth.

Key Points:

  • Strategic Move to the U.S.: Lervik emphasized that the U.S. offers more opportunities, especially with the new administration’s focus on investment. The company plans to aggressively expand in the U.S., with over 100 job openings already listed.
  • Concerns Over Europe’s Regulatory Environment: Cognite’s decision comes as Lervik has expressed long-standing concerns about Europe’s slow pace in fostering growth in the tech sector. The company’s founders hope that the U.S. push will encourage European regulators to reconsider their stance on tech regulations.
  • Cognite’s Backing and Market Focus: Cognite, a software firm focused on industrial data aggregation and analysis, has received significant investment from major players like Aker ASA, Accel, TCV, and Saudi Aramco. The firm’s client list includes AkerBP, with which it collaborates to enhance technology and software solutions for industrial applications.
  • AkerBP’s Position: AkerBP’s Chief Digital Officer Paula Doyle, speaking alongside Lervik, echoed the sentiment that Europe needs “smarter regulation” or even deregulation to foster more innovation in the tech and software industries. She highlighted that Europe has lagged behind the U.S. in these areas.
  • Valuation and Future Prospects: Following Saudi Aramco’s 7.4% investment in Cognite, the company’s estimated valuation has reached $1.6 billion, positioning it as a significant player in the industrial software space.