General Electric (www.ge.com) is to acquire ServiceMax, a ‘cloud’-based software company, for $915 million to expand its digital operations and boost its equipment-maintenance capabilities.

The deal will help the Boston-based company to automate the servicing of heavy-duty machinery. ServiceMax provides field-service management software to remotely track equipment maintenance, create work orders and manage repair schedules.

The California-based company has in the past raised more than $200 million from investors, including GE’s venture arm.

Bill Ruh, chief executive officer of GE Digital, told the press: “It’s no secret that our services revenue provides the bulk of our earnings. We’re moving away from where it’s all on paper to where it’s all becoming fully automated. Services are becoming a key part of the digital economy.”

Mr Ruh said that GE is investing in software operations and attempting to position itself as a “digital industrial company that makes equipment fitted with sensors to improve productivity”.

The group has sold off most of its finance and consumer businesses, while focusing on industries such as energy and aviation. “GE Digital, which we established last year, may become a $15 billion business by 2020.”

Mr Ruh added. GE has developed an operating system called Predix to help run industrial equipment more reliably and efficiently.