GE and Fanuc to dissolve joint venture
CHARLOTTESVILLE, Va., 17 Aug. 2009. GE (NYSE: GE) and Fanuc announced today that the two companies have agreed to dissolve the GE Fanuc Automation Corp. joint venture, which includes GE Fanuc Intelligent Platforms, a designer embedded military computing systems.
Editor's note: GE Intelligent Platforms changed its name to Abaco Systems on 23 Nov. 2015 as a result of the company's acquisition last September by New York-based private equity firm Veritas Capital.
CHARLOTTESVILLE, Va., 17 Aug. 2009. GE (NYSE: GE) and Fanuc announced today that the two companies have agreed to dissolve the GE Fanuc Automation Corp. joint venture, which includes GE Fanuc Intelligent Platforms, a designer and manufacturer of military embedded computing systems.
Under the terms of the agreement GE retains the software, services, embedded systems, and control systems businesses globally. The company will be known as GE Intelligent Platforms out of Charlottesville, Va., and will be led by MaryRose Sylvester, current chief executive officer of GE Fanuc Intelligent Platforms. Fanuc Ltd., out of Japan will retain the global computer numerical control (CNC) equipment business.
"For GE, this change will mean a continued, intense focus on serving our customers around the world while continuing to invest in significant growth platforms like process control systems, enterprise and automation software, and embedded computing as we continue to build further expertise around the GE vertical infrastructure segments," Sylvester says. "Our top priority is a smooth completion of transition and continuity for all customers, business partners, and employees. We are committed to delivering our customer commitments in every segment of our business.
GE officials say this agreement would allow each company to refocus its investments to grow its existing businesses and pursue its respective core industry expertise. GE and FANUC expect the transaction to be completed by the end of this year, subject to satisfactory customary closing conditions.
Established in 1986 by the joint investments of GE and FANUC, GE Fanuc Automation grew to serve industries around the world including the energy, water, consumer packaged goods, government & defense, and telecommunications industries.
"Our joint venture has achieved great success toward its original mission, which was to cooperate on the global growth and technical development of the PLC and CNC business," says Fanuc Honorary Chairman Dr. Seiuemon Inaba. "Over this time period, markets and opportunities also have changed dramatically, and both companies further expanded into adjacent segments. Today's market conditions are such that it's imperative we pursue these expanded opportunities, and while we have achieved great things together, it's in both our best interests that we focus our efforts on industry opportunities unique to our respective companies and that will deliver greater benefits to both our companies."