Minneapolis software developer Exosite said Wednesday that Parker Hannifin Corp., a maker of parts for aerospace and other manufacturers, will make a multimillion-dollar investment and expand a collaboration between the firms.
Parker Hannifin has used Exosite’s “Internet of Things” software in its precision connection products.
Hans Rempel, Exosite’s chief executive, declined to specify the investment amount other than to say it will make Parker Hannifin a minority owner of the company, which employs about 80 people in Minneapolis, Taiwan and Europe. Rempel said Exosite has about 100 customers.
Cleveland-based Parker Hannifin, with annual sales of more than $13 billion, makes precision-engineered motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide through its industrial and aerospace businesses. “We’re excited because our software allows manufacturers of smoke detectors or elevators or pumps to take that investment and connect through the Internet to monetize it in new ways,” Rempel said. “It creates new revenue streams. And this investment allows us to go further as an IOT software provider with this backing.”
Exosite started in 2009 from business incubator and investor Invenshure.
“This agreement marks a significant milestone … validating Invenshure’s business model and recognizing the effort put forth by the entire Exosite team to build and scale a software platform company,” said Danny Cunagin, co-chief executive of Invenshure and a director of Exosite. “We are delighted to have Parker Hannifin as an equity partner and strategic customer as we continue to expand the products and services of Exosite.”