Ashling goes deep on industry focus and UiPath with its Machina acquisition

Ashling Partners, a Chicago-based provider of native automation services, is the latest PE-backed automation services specialist to climb aboard the acquisition party train. Its acquisition of Machina, a Houston-based robotic process automation (RPA) services firm specialized in the diversified energy sector, hits a nice array of desirable growth levers—regional US geographic expansion, headcount addition, and complementary skills. What’s additionally notable, though, is the increased depth of industry focus: Ashling’s deep manufacturing expertise coupled with Machina’s energy focus, as well as both firms’ singular focus on UiPath as its RPA software partner of choice.

Spending its money wisely

Ashling, a reigning HFS Hot Vendor (Q4 2020), was founded in 2017 with the mission to help enterprises drive business outcomes with intelligent automation. Ashling means “vision or dream” in Gaelic; thus, its mission to enable enterprises’ automation visions is literally in the name. From inception, Ashling has been RPA-led, focusing exclusively on UiPath but also embracing the HFS concept of the Triple-A Trifecta, the need for the useful intersection of artificial intelligence (AI), automation, and smart analytics to drive optimal outcomes. The firm took our Triple-A one step further and created the “four As of Ashling” by adding advisory. It rounds out its RPA focus with strong and growing capabilities in process intelligence and intelligent document processing (IDP).

In February 2021, Ashling announced an undisclosed capital investment with Thomas H. Lee Partners supported by its THL Automation Fund, a $900 million-strong vehicle designed to drive automation growth. Ashling’s funding objectives were geographic, capabilities, and industry sector expertise growth. Pre-funding, the firm had already invested in an offshore development center in Pune, India, and had just opened a nearshore center in Romania in January 2021. The firm has invested further in pre-sales capabilities such as advisory and engineering talent and set its sights on potential acquisitions.

The skinny on Machina

Machina, also a former HFS Hot Vendor (Q3 2019), was founded in 2017 by several former Big 4 consultants with substantial cumulative experience in the energy sector. Headquartered in Houston, Machina serves the diversified energy sector with clients spanning the energy value chain from oil field equipment manufacturers to midstream and pipeline companies and energy retail providers.

The Machina acquisition nets Ashling approximately 50 new resources, instant depth in the energy sector where Ashling has virtually no presence, geographic presence with various locations across the south-central US, additional UiPath capabilities inclusive of process intelligence expertise, and a purported strong cultural fit.

The resulting bigger, better Ashling now boasts approximately 200 resources, focused depth in UiPath RPA and process intelligence, and industry-specific expertise in the high opportunity sectors of manufacturing and diversified energy, as well as broad sector experience across BFSI (banking, financial services, and insurance) and healthcare and cross-industry support of shared service centers.

The Bottom Line: Money is cheap, and consolidation will continue. Aligning to industry needs in underserved sectors is a smart means to drive growth and differentiation. Just don’t forget the outcomes

Ashling’s acquisition of Machina reads like a peaceful bedtime story—great technical, cultural, and geographic synergies with specialization in industries less served by automation. The match is great. The happy ending will come from Ashling’s continued laser-like focus on upholding its “Four As” approach and relentless pursuit of outcomes for its clients.

Buying companies with cheap money is the easy part. Integrating them and driving value is hard work.