The new company is intended to be wholly owned by GE but will still come with its own brand and identity, equity structure and board of directors.

It will start with US$1.2 billion in annual software revenue and an existing global industrial customer base.

The new company would bring together GE Digital's IIoT solutions, including the Predix platform, Asset Performance Management, Historian, Automation (HMI/SCADA), Manufacturing Execution Systems, Operations Performance Management, and the GE Power Digital and Grid Software Solutions businesses.

GE is also selling a majority stake in ServiceMax, a provider of field service management software, to Silver Lake, a private equity firm focused on technology investments. With these actions, the company said it will sharpen the focus of its IIoT portfolio to position the new business for future growth. The transaction is expected to close in the March quarter of 2019.

GE chairman and CEO H. Lawrence Culp, Jr commented: "As an independently operated company, our digital business will be best positioned to advance our strategy to focus on our core verticals to deliver greater value for our customers and generate new value for shareholders."

GE's new IIoT business would provide software for asset-intensive industries, with a focus on the power, renewables, aviation, oil and gas, food and beverage, chemicals, consumer packaged goods and mining industries.

Further details on GE's new IIoT software company will be announced in the March quarter of 2019.