Rockwell Automation prepared to make a $1 billion equity investment in IoT and augmented reality (AR) systems provider PTC as part of a strategic partnership targeting the industrial IoT sector.

The US-based companies plan to “align their respective smart factory technologies” to deliver an integrated system designed to increase productivity and plant efficiency, reduce operational risk and deliver “better system interoperability,” Rockwell said in a statement.

James Heppelmann, president and CEO of PTC, said the combination of his company’s technology with Rockwell’s industrial control and software technology, brand and domain expertise will enable enterprises “to capitalise on the promise of the Industrial IoT.”

Rockwell chairman and CEO Blake Moret will join PTC’s board of directors at the closing of the equity transaction, which is expected within 60 days.

Moret stated the two companies will “offer the most comprehensive and flexible IoT offering in the industrial space” adding there is a “natural alignment” between them, as information and operational technology converge.