ABB completes second investment in edge-to-cloud solution provider Pratexo

ABB, a leading company in electrification and automation, has expanded its partnership with Pratexo, a U.S.-based software provider. Together, they are creating new digital solutions to make power systems smarter, more reliable, and more efficient. This collaboration aims to improve how industries manage their electrical infrastructure, using advanced tools to analyze real-time data and predict potential issues.

What is Edge-to-Cloud Technology?

Many companies today are moving from a centralized cloud setup to a combination of “edge” and “cloud” computing. Edge computing means processing data closer to where it’s created—in this case, right at the power systems themselves. This shift allows for quicker decisions, faster reactions, and better management of complex electrical systems. By using both edge and cloud computing, industries can handle their operations with greater efficiency.

ABB’s Ongoing Investment in Pratexo

Recently, ABB made a second investment in Pratexo. While the financial details were not disclosed, the goal is clear: to bring more digital technology into the energy sector. According to Stuart Thompson, President of ABB’s Electrification Service Division, this investment is about giving customers better tools for managing their energy needs. These tools will make it possible to quickly process data and make decisions, leading to more effective energy use and longer-lasting equipment.

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Better Data, Smarter Decisions

By combining their expertise, ABB and Pratexo are developing advanced digital tools that can identify issues before they cause problems. These tools help prevent unexpected failures and reduce downtime in power systems. This means that industries, utilities, and infrastructure sectors can better manage their energy supply and use. In addition to making energy distribution more reliable, these solutions will support a cleaner and more sustainable future.

Pratexo’s CEO, Blaine Mathieu, noted that the partnership has grown from just exploring ideas to directly creating market-ready solutions. These new tools are set to be available by 2025 and beyond, marking a major step forward in the partnership between the two companies.

A New Role for ABB at Pratexo

As part of the recent investment, ABB will now have a seat on Pratexo’s board, represented by Eric Deschenes, who leads global marketing and sales for ABB’s Electrification Service. This closer involvement will allow ABB to play a key role in shaping Pratexo’s future projects.

A History of Innovation and Collaboration

Pratexo is not a new player in ABB’s innovation circle. In 2022, Pratexo was one of three winners in ABB Electrification’s Startup Challenge. This competition encouraged fresh ideas to support the global shift toward smart and sustainable energy solutions. With this background, ABB’s second investment in Pratexo is a natural next step.

Growing Ecosystem of Innovation

This partnership with Pratexo is just one part of ABB’s broader strategy. In 2024 alone, ABB has made seven additional venture capital investments, expanding its network of innovative partners. The company’s venture capital unit, ABB Ventures, has been supporting startups since 2009, investing around $450 million in promising companies. These investments align with ABB’s focus on electrification, automation, and sustainability.

Who are ABB and Pratexo?

ABB has a long history—over 140 years—of expertise in electrification and automation. With more than 105,000 employees globally, ABB is dedicated to helping industries perform better while using fewer resources. Its aim is to create a sustainable, efficient, and high-performing future.

Pratexo, founded in 2019, draws on decades of experience in building cloud-based applications for major organizations like PayPal and NASA. Its key product, Pratexo Power Guardian™, is designed to keep complex electrical systems running smoothly and safely. This tool helps industries manage different types of electrical machines while keeping critical data local and secure.