EDS announced yesterday that it has reached an agreement to sell its UGS PLM Solutions unit for $2.05 billion in cash to Bain Capital, Silver Lake Partners and Warburg Pincus; a group of three private equity firms.
UGS PLM Solutions has 5,000 employees and provides product data management as well as collaboration and design software. The transaction is expected to close within 90 days, pending customary closing conditions.
‘The transaction is another tangible step in the strategic plan we laid out for investors in June 2003,’ said EDS Chairman and CEO Mike Jordan. ‘We said our ongoing focus will be strengthening our core information technology and business process outsourcing operations and our balance sheet. This transaction supports both priorities.’
The decision to divest UGS PLM Solutions was announced in October 2003, after EDS completed an assessment of its business portfolio against its strategic plan.
‘While UGS PLM Solutions is an excellent business and has been a solid contributor to EDS, its business is clearly outside of our core focus,’ said EDS CFO Bob Swan. ‘As a result, we’re essentially divesting a non-core, non-strategic operation, while enabling UGS PLM Solutions to further enhance its future growth.’