UGS acquiring Tecnomatix for $228 million
Plano, TX; Herzlia, Israel—To give users the best possible product lifecycle management (PLM)/manufacturing process management (MPM) solutions, Tecnomatix Technologies Ltd. reports that it has agreed to be acquired by UGS for approximately $228 million in cash, pending shareholder and regulatory approvals.
Plano, TX; Herzlia, Israel— To give users the best possible product lifecycle management (PLM)/manufacturing process management (MPM) solutions, Tecnomatix Technologies Ltd. reports that it has agreed to be acquired by UGS for approximately $228 million in cash, pending shareholder and regulatory approvals.
Tecnomatix’s shareholders will receive $17 per share in cash, which reportedly represents a 39% premium over the firm’s average closing price during the past 60 trading days. This transaction implies a total equity value of $227.7 million, which is based on 12.2 million shares outstanding, and assumes the exercise of 2.9 million options. Tecnomatix's founders and other significant shareholders, owning approximately 13% of the outstanding shares, have irrevocably committed to vote in favor of the acquisition. The transaction also has received the unanimous support of Tecnomatix's board of directors. The deal is expected to be completed by the end of 2005’s first quarter.
“This agreement with UGS offers an attractive price to our shareholders. This price validates the business value of MPM solutions to leading manufacturing enterprises, as well as the contribution that Tecnomatix and its employees made in developing this marketplace. From an innovative vision only five years ago to over 300 productive enterprise deployments today, the Tecnomatix MPM offering has become the chosen path to manufacturing excellence at the world's leading automotive, aerospace and electronics manufacturers,' says Harel Beit-On, Tecnomatix’s chairman. 'Through this marriage of best-in-class MPM solutions and UGS' leading enterprise PLM expertise, Tecnomatix's customers and manufacturers
Jaron Lotan, Tecnomatix’s president and CEO, adds that, 'After two years of close collaboration, UGS is uniquely positioned to acquire Tecnomatix. Joining UGS will enable Tecnomatix to benefit from the vast technical resources, as well as the broader market coverage of this leading enterprise solution provider. This combination will offer customers an integrated IT solution combining UGS' enterprise capabilities with Tecnomatix's industry leading digital manufacturing products and services. Tecnomatix employees can look forward to personal growth as part of UGS.'
USG’s chairman, president, and CEO, Tony Affuso, adds that, “After having worked closely with Tecnomatix for a number of years, we’re excited that we’ll be able to further capitalize on the strengths of both organizations. Given the recent successes of our joint sales initiatives and ongoing product integration efforts, this agreement marks an important extension of our efforts to offer customers comprehensive solutions to their most complicated planning and production issues. Tecnomatix solutions will provide UGS with expanded offerings in the PLM space for existing UGS customers, as well as new customers in selected industries currently being served by Tecnomatix. We look forward to Tecnomatix employees, with their in-depth knowledge and experience, becoming part of our organization. Following the acquisition, it is UGS' intention to continue to support all existing Tecnomatix customers and solutions.'
Control Engineering Daily News Desk
Jim Montague, news editor