The U.K.-based tech company Aveva has reached an agreement to buy the industrial software maker OSIsoft in a deal with an enterprise value at $5 billion.

Aviva said it plans to finance the deal with cash, debt, and a proposed $3.5 billion rights issue. The rights issue would be the largest announced by a U.K. company this year, according to Bloomberg data.

“Aveva and OSIsoft will combine their complementary product offerings, bringing together industrial software and data management to help customers in industrial and essential organizations accelerate their digital transformational strategies as efficiency, flexibility, sustainability and resilience become increasingly urgent requirements for customers,” the companies said in a statement.

“The industrial sector is the last sector to be digitized at scale,” Aveva chief executive officer Craig Hayman said. “You end up with industrial firms who want to become software firms and that road is quite perilous. It rarely succeeds.”

OSIsoft is owned by SoftBank, Mitsui & Co., and Estudillo Holdings, which is majority owned by J. Patrick Kennedy, the company’s founder and chief executive officer and his family.

Kennedy will be chairman emeritus of the combined company and hold about 4% of shares.

“Given the transformational nature of the deal, integration risk is an obvious one to monitor,” Citi analysts said. Analysts at Jeffries said the valuation of OSIsoft was “pricey” but it offered “strong industrial logic.”

Aveva is majority owned by Schneider Electric after merging with that company’s industrial software arm in 2018. Schneider supports the deal and will participate in the sale of discounted shares to finance it.

The deal is expected to close around the end of the calendar year. The rights issue is expected to be launched in the fall.

Aveva shares were up 6.7% in early trading Tuesday.

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