Emerson completed the purchase of Zedi’s software and automation businesses on July 8, which Emerson expects will help the company accelerate digital transformation in the oil and gas industry.
Zedi’s software and automation businesses are focused on automating the production process for oil and gas companies through edge and cloud analytics and machine learning. Currently, its technology is enabling customers to monitor more than 2 million sensors and thousands of devices and applications, according to the Emerson release.
Emerson said the combined software and expertise of the two companies will provide producers with scalable and easily deployable end-to-end connected solutions to optimize and manage their operations. The terms of the transaction weren’t disclosed.
“As world energy demand continues to grow, helping our vital oil and gas market customers maximize their resources is a top priority. ... The addition of Zedi strengthens our ability to help customers leverage the latest advances from the field to the refinery,” Lal Karsanbhai, executive president of Emerson’s Automation Solutions business, said in a statement on July 8.
In particular, the addition of Zedi’s cloud supervisory control and data acquisition (SCADA) platform will further enable Emerson, already a leader in global automation, to help oil and gas producers increase production and lower operating costs through cloud-based monitoring, control and optimization.
“This important investment bolsters our portfolio and ability to help Emerson’s customers achieve top quartile performance through emerging Industrial Internet of Things technologies,” noted Jim Nyquist, group president of Emerson’s systems and solutions business, in a statement.
Zedi’s software and automation businesses are based in Calgary, Alberta, and have about 155 employees in North America.
Headquartered in St. Louis, Mo., Emerson provides services for customers in industrial, commercial, and residential markets.
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The company also said it expects to generate substantial free cash flow in 2018, allowing it to initiate a dividend in the first-quarter of 2019.