In the process of making application development faster, Siemens has boosted the adoption of its industrial Internet of Things platform. The company believes the process will be faster and easier after the new acquisition for the internet of things.

The German industrial market leader revealed his interests to acquire Mendix which is a Boston residing provider of low-code application development software. Both the companies signed an agreement this Wednesday and the deal is valued at 600 million Euros which amounts roughly to $720 million USD. The company aims to put the seal on the deal in the first quarter of 2019 fiscal year.

Klaus Helmrich, the acting AG board member of Siemens revealed the acquisition is purposed to bring a new sector for the company and escalate the company’s “leading position in digitizing the industrial market space.”

Helmrich further added, “Mendix is the market player in the field which is rapidly growing in demand, the low-code platform and their platform will help our existing customer base to adopt our IoT OS, MindSphere very swiftly and would benefit the most by stimulating cloud-based application development modules for the industrial aspect of IoT to grow.”

After the acquisition is carried out successfully Mendix would become a subset in the software business of Siemen’s Digital Factory specified division, while the company would also extend the usage of this platform to its other divisions as well. The co-founder and CEO of Mendix, Derek Ross will hold a position in the Siemens PLM software senior leadership team and work with the acquiring company on future fates.

Siemens shared that they will find Mendix’s independent product modules as well and won’t hamper the company’s existing customer base. They would support the company’s wide variety of services of verticals and customers even after acquisition. Mendix is expected to boost Siemen’s current cloud, IoT, and digital enterprise software applications.

Mendix has more than 400 employees working and it has already raised more than $38 million in capital coming from investors. Mendix was recently listed in the Gartner’s Magic Quadrant for Mobile App Development Platforms 2018. Along with its debut in 2018 cloud 100 CRN’s 20 coolest cloud platform vendors. Mendix holds a strong profile and is definitely expected to add value to the acquiring company.

The announcement for acquisition followed after the launch of a supporting program for Siemens MindSphere, the industrial IoT platform from the previous fall.

President of KAASM, Shawn Sandoval, the Seattle based solution provider which is engrossed with direct selling of Siemens software said to CRN that his company is evaluating the pros and cons which must decide their shift to MindSphere for building their own apps from their existing operating software. They add that the news of Siemens new acquisition of Mendix was encouraging.

“It was clear that the acquisition was initiated to divide development burden”, he added. Mendix is the perfect opportunity for the Siemens because the only aspect their OS was lacking was that the system integrators on general fall didn’t have much coding experience as the A type developers.