GE Vernova to sell Proficy to TPG for $600 million, shifts focus to grid software
Workers of GE Vernova in France in its offshore wind sector, in Nantes, France, October 17, 2024. REUTERS/Stephane Mahe/File Photo
GE Vernova said on Thursday it will sell its Proficy industrial software unit to private equity firm TPG for $600 million and reinvest the proceeds in grid software.
Proficy, which accounts for about 20 per cent of GE Vernova’s electrification software revenue, helps manufacturers monitor and optimize production. Electrification software revenue in 2024 was $7.55 billion.
The company, spun off from GE last year, has been working to offset rising costs tied to tariffs and inflation.
In April, it forecast a $300 million to $400 million increase in costs in 2025 and said it planned to raise prices and streamline operations to protect margins.
GE Vernova is also investing in its supply chain and in January announced a $600 million upgrade to its U.S. factories over two years to meet rising global electricity demand.
"Indirectly, we are going to reinvest the proceeds into the grid software business," CEO Scott Strazik said at a Morgan Stanley conference after the deal was announced.
The Proficy deal is expected to close in the first half of 2026. TPG would own and control the business, while GE Vernova would retain a board observer seat.
GE Vernova expects to receive additional sale proceeds in the future depending on various outcomes and conditions.
The company is monetizing a segment of the software portfolio that has good value but is likely undervalued by investors, said RBC Capital Markets analyst Christopher Dendrinos.
Shares of the energy equipment and services provider fell 3.2 per cent to $622.77.
"Reinvesting the proceeds in other areas makes strategic sense. Manufacturing is in high demand and there are opportunities to reinvest in those core business lines," said Dendrinos.
The deal would establish Proficy as a standalone software business. TPG would invest in Proficy through TPG Capital, the firm’s U.S. and European private‑equity platform.
