Rockwell Automation is buying Plex Systems for $2.22 billion in cash. The acquisition brings together one of the world’s largest industrial automation firms and one of the largest cloud-based smart manufacturing platforms.

Plex revenues have been growing in double digits, and the acquisition is expected have an immediate impact on Rockwell Automation’s operating margins.

According to Rockwell Automation, the acquisition of Plex Systems will accelerate the company’s annual recurring revenue goal achievement by approximately two years.

Plex provides applications in manufacturing execution, supply chain visibility, and quality management across discrete, hybrid, and process industry segments

“This acquisition will accelerate our strategy to bring the Connected Enterprise to life, driving faster time to value for our customers as they increasingly adopt cloud solutions to improve resilience, agility, and sustainability in their operations”

“This acquisition will accelerate our strategy to bring the Connected Enterprise to life, driving faster time to value for our customers as they increasingly adopt cloud solutions to improve resilience, agility, and sustainability in their operations,” said Blake Moret, Chairman and CEO of Rockwell Automation. “Combining Plex’s cutting-edge cloud technology with Rockwell’s existing software portfolio and domain expertise will add customer value and create more ways to win. The acquisition will also accelerate our software revenue growth and strengthen our annual recurring revenue streams.”

Plex’s platform helps customers to connect, automate, track, and analyse their operations and connected supply chains with cloud-based manufacturing execution systems. According to Rockwell, Plex solutions help manufacturers increase production and improve resilience, while driving efficiency and compliance.

“Rockwell believes in the power of data and technology to transform manufacturing and industrial operations,” said Brian Shepherd, senior vice president, Software and Control, for Rockwell Automation. “Together with the advanced asset maintenance and management capabilities provided by our recent Fiix acquisition, Rockwell will have a strong portfolio of cloud-native solutions for our customers’ production systems upon completion of the Plex acquisition.”

“Plex has always been more than a company,” said Bill Berutti, CEO of Plex. “We have been a leader in the movement to smart manufacturing and a trusted partner to more than 700 manufacturing companies around the globe. Joining forces with Rockwell is great for our customers, our partners, and our employees as we move to expand our reach and impact and accelerate our mission to bring manufacturing to the cloud.”