UGS completes Tecnomatix Technologies acquisition

Edited by the Engineeringtalk editorial team Apr 20, 2005

UGS has completed its acquisition of all the outstanding equity of Tecnomatix Technologies for approximately $228 million in cash, net of any applicable tax withholding obligations.

UGS Corp has completed its acquisition of all the outstanding equity of Tecnomatix Technologies for approximately $228 million in cash, or $17.00 a share, net of any applicable tax withholding obligations.

The acquisition, UGS' fourth since launching independent operations in May 2004, positions UGS as the number one provider of digital manufacturing solutions in the PLM industry.

CIMdata, a leading PLM consulting and research firm, estimates that investments in digital manufacturing initiatives by industrial companies are expected to grow by more than 25% annually over the next three years.

UGS will market Tecnomatix as its digital manufacturing brand to include both Tecnomatix and former E-factory software.

The company will offer a fully integrated solution of Tecnomatix MPM to UGS Teamcentre software users while continuing to offer Tecnomatix' leading open stand-alone MPM solution integrated with the PLM environment of choice for its customers.

In addition, UGS plans to announce additional digital manufacturing-related technology enhancements later in 2005.

"We extend a warm welcome to the Tecnomatix customers who are now part of the UGS family".

"With the acquisition complete, the value our customers have received will be even further enriched by the range of solutions, scalability and commitment to service that our newly merged companies will provide", said Tony Affuso, Chairman, CEO and president of UGS.

"The Tecnomatix acquisition combines complementary market presence and world-class technology and enhances UGS' ability to deliver premier software solutions to our customers in the digital manufacturing space".

"It represents a natural but significant step in UGS' digital manufacturing strategy and another strategic milestone as we continue to expand our suite of software solutions in order to provide value across a product's entire lifecycle".