GE Transportation acquired rail industry software developer RMI from The Carlyle Group, expanding its transportation software and optimization business.
The acquisition is part of a strategy to expand GE Transportation and General Electric’s software business. Terms of the deal were not disclosed.
Last year GE Transportation said it would spend $231 million to upgrade factories where it produces locomotives as well as marine and mining equipment. In November, General Electric said it would expand its software products and open a new Global Software Center in San Ramon, Calif., to support all GE businesses.
General Electric said its software revenue totals $2.5 billion. Adding related services brings GE’s total software and solutions revenue to $4 billion a year. RMI provides transportation management and optimization software for railroads, shippers, railcar leasing companies, and intermodal operators in North America.
Railroads and shippers will need increasingly sophisticated software and technology as rail freight demand rises in coming years, GE Transportation said.
“Combined, we are able to offer a portfolio of products to help customers around the globe improve their operations,” said Lorenzo Simonelli, president and CEO.