Benzinga | Jun 25, 2021 01:16PM EDT

Rockwell Automation To Acquire Cloud Based Smart Manufacturing Platform Plex Systems For $2.22B

* Rockwell Automation Inc (NYSE:ROK) agreed to acquire cloud-native innovative manufacturing platform Plex Systems for $2.22 billion in cash.

* Plex Systems' subscription-based innovative manufacturing platform accelerates customers' digital transformation and improves visibility into end-to-end production systems with easy-to-deploy, cloud-native solutions.

* A combination of cash and short-term and long-term debt will finance the acquisition.

* The acquisition is likely to close in Rockwell's Q4.

* Plex will be part of Rockwell's Software and Control operating segment.

* The acquisition is likely to be immediately accretive to Rockwell's operating margins.

* Plex acquisition is likely to accelerate Rockwell's annual recurring revenue goal achievement by two years.

* Rockwell will welcome over 500 new employees under the arrangement.

* Rockwell held $641.9 million in cash and equivalents as of March 31, 2021. It had $25.6 million in short-term debt and $1.98 billion in long-term debt.

* Price action: ROK shares traded higher by 0.03% at $285.60 on the last check Friday.