Tecnomatix Technologies is to acquire the assets of USDATA Corporation, a developer of supervisory-level control (SCADA) and manufacturing execution systems (MES).
With the acquisition of the USDATA technology, Tecnomatix will be able to provide a complete Manufacturing Process Management (MPM) solution spanning the entire manufacturing process lifecycle.
Tecnomatix intends to integrate USDATA’s SCADA product FactoryLink and its MES product Xfactory with the Tecnomatix eMPower offering to create an environment for collaborative planning, engineering and execution of manufacturing processes.
The complete solution will provide a feedback loop from the factory floor to engineering, allowing manufacturers to compare shop-floor performance with original design and process plans, and to implement manufacturing improvements on an ongoing basis.
‘We expect the integration of FactoryLink and Xfactory to go smoothly because of the similar open architectures our two companies have chosen to manage manufacturing data,’ said Harel Beit-On, chairman and chief executive officer of Tecnomatix Technologies.
eMPower is built on the concept of the electronic bills of processes (eBOP) which manages product operations and resources. Using USDATA’s technology, Tecnomatix will extend the functionality of the eBOP to include routes, work-in-process (WIP) and orders. The enhanced eBOP will then be the basis of a new class of applications.
Tecnomatix announced the agreement in consideration for the issuance of up to 1,011,747 Tecnomatix shares, subject to certain adjustments. Based on the closing price of $10.16 per Tecnomatix share as of July 29, 2003, the shares to be issued as consideration for the acquisition are valued at approximately $10.3 million.
As part of the asset purchase transaction, SCP Private Equity Partners II, L.P., the primary stockholder of USDATA, will purchase from Tecnomatix 113,838 of its shares at $15.65 per share.