UGS, the product lifecycle management (PLM) software house, is to acquire all of the outstanding equity of Tecnomatix Technologies, a developer of Manufacturing Process Management (MPM) software for approximately $228 million in cash, or $17.00 a share.
UGS currently deploys Tecnomatix software in conjunction with its Open Manufacturing Backbone (OMB), an open software environment in which third-party software applications can interoperate.
Following the close of the transaction, the companies intend to offer a fully integrated solution of Tecnomatix MPM to UGS Teamcenter users while continuing to offer Tecnomatix’ 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.
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.
The Tecnomatix transaction marks UGS’ fourth technology acquisition since the company launched independent operations in May 2004.