UGS to Acquire Tecnomatix; Acquisition a Major Milestone in Expanding UGS Leadership in High-growth Digital Manufacturing
January 04 2005 - 8:02AM
PR Newswire (US)
UGS to Acquire Tecnomatix; Acquisition a Major Milestone in
Expanding UGS Leadership in High-growth Digital Manufacturing UGS
to Accelerate Deployment of Integrated Manufacturing Solutions as
Part of Product Lifecycle Management Leader's Open Manufacturing
Backbone (OMB) PLANO, Texas, Jan. 4 /PRNewswire/ -- UGS, a leading
global provider of product lifecycle management (PLM) software and
services, today announced a definitive agreement to acquire all of
the outstanding equity of Tecnomatix Technologies Ltd.
(NASDAQ:TCNO), the leader in Manufacturing Process Management (MPM)
software solutions for the automotive, electronics, aerospace and
other manufacturing and processing industries, for approximately
$228 million in cash, or $17.00 a share. The transaction represents
another strategic milestone for UGS as it continues to expand its
suite of software solutions in order to provide value across a
product's entire lifecycle. Today's announcement demonstrates the
company's continuing dedication to leadership in the high-growth
sector of digital manufacturing -- a PLM strategy that focuses on
improving every aspect of how a company builds its products.
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 percent annually
over the next three years. UGS has reported a nearly 100 percent
increase in digital manufacturing-related revenue over the last
four quarters. UGS currently deploys Tecnomatix software in
conjunction with its Open Manufacturing Backbone (OMB), a
globally-scalable technology backbone designed to transform the
process of digital manufacturing through an open environment in
which third-party software applications can interoperate. As a
result of the transaction being announced today, UGS now expects to
speed up the integration with Tecnomatix solutions and deliver
these solutions as an integral component of both its OMB and its
E-factory digital manufacturing solution more quickly and
seamlessly. "Integrating Tecnomatix into UGS is a natural but
significant step in our digital manufacturing strategy and should
accelerate our ability to deliver this premier software on behalf
of UGS and Tecnomatix customers," said Tony Affuso, chairman, CEO
and president of UGS. "Customers that have committed to digital
manufacturing technology from Tecnomatix and/or UGS can expect to
see enhanced delivery of even deeper and richer capabilities going
forward as we more fully integrate our respective solutions. "We
believe that the Tecnomatix team brings to the table a tremendous
amount of industry knowledge and deep expertise in digital
manufacturing technology. We expect the combination of the
Tecnomatix team with UGS' PLM- and digital manufacturing-leading
capabilities to enable UGS to provide unparalleled technical
understanding and the deepest and broadest coverage on a worldwide
basis in the digital manufacturing market." Formalizing an Existing
Relationship The transaction -- which, subject to the receipt of
required regulatory approvals, is expected to close by the end of
the first quarter 2005 -- marks the formal linkage between UGS and
Tecnomatix, which have been working closely together through a
strategic alliance since 2002. Following the close of the
transaction, the companies intend to offer a fully integrated
solution of Tecnomatix MPM to UGS Teamcenter(R) users while
continuing to offer Tecnomatix' leading open standalone MPM
solution integrated with the PLM environment of choice for its
customers. In addition, the companies intend to announce additional
technology enhancements later this year. "We are confident that the
combined technologies and know-how of both companies will enable us
to offer the best manufacturing planning and execution solution for
the benefit of all customers," said Harel Beit-On, chairman of
Tecnomatix. "In addition, unlike with other technology
acquisitions, this one is prefaced by more than two years of close
collaboration between our companies, so the formal integration of
Tecnomatix technologies into UGS' digital manufacturing solution
promises to go very smoothly. "The two organizations have been
working well for the past two years and the Tecnomatix employees
are looking forward to becoming a part of the leading PLM team in
UGS." Continued Investment in Business The Tecnomatix transaction
marks UGS' fourth technology acquisition since the company launched
independent operations in May 2004. "UGS continues to grow its
franchise through its dedication to offering the world's best
product lifecycle management software to its customers, and the
addition of Tecnomatix to the UGS family is a major step forward in
that effort," Affuso said. "Along with sustained internal spending
on research and development, these acquisitions have added
significant value to our technology platform, which was already
second to none in the PLM industry." About UGS UGS is a leading
global provider of product lifecycle management (PLM) software and
services with more than 3.3 million licensed seats and 42,000
clients worldwide. The company promotes openness and
standardization and works collaboratively with its clients in
creating enterprise solutions enabling them to transform their
process of innovation and thus begin to capture the value of PLM.
For more information on UGS products and services, visit
http://www.ugs.com/ . About Tecnomatix Technologies Ltd. Tecnomatix
Technologies Ltd. provides the world's leading Manufacturing
Process Management (MPM) solutions for the automotive, electronics,
aerospace and other manufacturing and processing industries.
Tecnomatix eMPower solutions for MPM enable the design, simulation,
and execution of production processes, and provide real-time
control and visibility throughout shop-floor operations. More than
5000 companies worldwide are using eMPower solutions to reduce
operating costs, accelerate product introductions, and shorten
time-to- volume -- while maintaining high levels of product and
process quality. With offices in over 20 countries, Tecnomatix
supports such global leaders as BMW, Boeing, Comau, Ford, GM,
Mazda, Philips, Schneider Electric and Volkswagen. For more
information, visit http://www.tecnomatix.com/ . The statements in
this news release that are not historical statements, including
statements regarding future product integration and development and
the benefits of the proposed transaction, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to numerous risks and uncertainties, many of
which are beyond UGS' control, which could cause actual results to
differ materially from such statements, including the risks that
the proposed transaction is not consummated or that UGS does not
realize the expected benefits. The company has included a
discussion of other pertinent risk factors in the final offering
memorandum relating to our 10% Senior Subordinated Notes, a copy of
which is available from the company. The company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Note: UGS, Teamcenter and E-factory are registered
trademarks of UGS Corp. or its subsidiaries in the United States
and in other countries. All other trademarks, registered trademarks
or service marks belong to their respective holders. MEDIA
CONTACTS: INVESTOR CONTACTS: John Clendening - UGS Doug Barnett -
UGS 972-987-3358 972-987-3352 Shaun Ennis - Tecnomatix Oren
Steinberg - Tecnomatix 603-766-9515 972-9-9594891 DATASOURCE: UGS
CONTACT: media, John Clendening of UGS, +1-972-987-3358, or ; or
Shaun Ennis of Tecnomatix Technologies Ltd., +1-603-766-9515, or ;
or investors, Doug Barnett of UGS, +1-972-987-3352, or ; or Oren
Steinberg of Tecnomatix Technologies Ltd., +972-9-9594891, or Web
site: http://www.ugs.com/ http://www.tecnomatix.com/
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