Product category:
3D CAD software
News Release from: PTC - Parametric Technology (UK)
Edited by the Engineeringtalk Editorial
Team on 01 November 2007
PTC plans software acquisition
PTC plans to integrate the CoCreate modelling solutions with the PTC Product Development System (PDS) in order to offer CoCreate customers additional product development capabilities.
PTC has entered into a definitive agreement to acquire CoCreate Software, a provider of PLM and CAD modelling solutions, for approximately US $250 million CoCreate, is based in Sindelfingen, Germany, is privately held, has 280 employees and has more than 5000 customers globally, including Agilent, Canon, Fisher Controls, Fujitsu, HP, Liebherr, Matsushita Electric, NEC, Olympus, Phoenix Contact and Seiko Epson
This article was originally published on Engineeringtalk on 13 Mar 2002 at 8.00am (UK)
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With the acquisition of CoCreate, PTC will broaden its portfolio and offer support for a large range of modelling techniques.
PTC plans to integrate the CoCreate modelling solutions with the PTC Product Development System (PDS) in order to offer CoCreate customers additional product development capabilities including engineering calculations, dynamic publishing, visualisation, high-speed machining and enterprise content and process management and ultimately, the option of using their modelling solutions as part of the PTC PDS.
With revenue of approximately US $80 million and substantial nonGAAP operating margins in the last twelve months, PTC expects the acquisition will be accretive to nonGAAP earnings and operating margins in the second quarter of the 2008 fiscal year.
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Due to the lower level of deferred maintenance revenue that PTC will be permitted to record under purchase accounting as compared to the level of deferred maintenance revenue recorded by CoCreate, PTC expects that the acquisition will be dilutive to GAAP EPS in 2008, but accretive to GAAP EPS in 2009 and beyond.
The acquisition is expected to close in December 2007, subject to customary conditions including regulatory approval.
Richard Harrison, President and CEO of PTC said "This acquisition is compelling as it enhances PTC's product portfolio while also contributing in a meaningful way to earnings and operating margin".
"The satisfaction of CoCreate's customers will be a major focus for PTC".
"We are committed to protecting and enhancing the investment that these customers have made in CoCreate solutions and we plan to also offer additional complementary PTC solutions in order to bring them even more value".
"With this acquisition, PTC embraces all the accepted approaches to modeling - parametric, explicit, derived and 2D".
William Gascoigne, CEO, CoCreate said "PTC's plan to support and further develop CoCreate solutions as well as provide an integration to PTC's product development system will provide our customers with additional technology choices and even greater opportunities for product development success".
PTC plans to finance the acquisition and related expenses with a combination of US $50 million of cash and US $210 million of debt from its existing credit facility.
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