UGS Moves to Acquire Tecnomatix

By DE Editors

UGS announced last week an agreement to acquire Tecnomatix TechnologiesLtd., a manufacturing process management (MPM) software solutionsprovider for the automotive, electronics, aerospace, and othermanufacturing and processing industries. The transaction is expected tocost in the neighborhood of $228 million in cash.

The purchase is the fourth technology acquisition since UGS launchedindependent operations in May 2004, showing it to be continuing itsexpansion of software solutions to provide value across a product'sentire lifecycle. UGS currently uses Tecnomatix software in conjunctionwith its Open Manufacturing Backbone (OMB), a globally-scalabletechnology framework designed to transform the process of digitalmanufacturing through an open environment in which third-party softwareapplications can interoperate.

As a result of the transaction, UGS now expects to speed up theintegration with Tecnomatix solutions and deliver these solutions as anintegral component of both its OMB and its E-factory digitalmanufacturing solution more quickly and seamlessly.

"Integrating Tecnomatix into UGS is a natural but significant step inour digital manufacturing strategy and should accelerate our ability todeliver this premier software on behalf of UGS and Tecnomatixcustomers," said Tony Affuso, chairman, CEO, and president of UGS. "Webelieve that the Tecnomatix team brings to the table a tremendousamount of industry knowledge and deep expertise in digitalmanufacturing technology."

"We are confident that the combined technologies and know-how of bothcompanies will enable us to offer the best manufacturing planning andexecution solution for the benefit of all customers," said HarelBeit-On, chairman of Tecnomatix. "In addition, unlike with othertechnology acquisitions, this one is prefaced by more than two years ofclose collaboration between our companies, so the formal integration ofTecnomatix technologies into UGS' digital manufacturing solutionpromises to go very smoothly."

Following the close of the transaction, the companies intend to offer afully integrated solution of Tecnomatix MPM to UGS Teamcenter userswhile continuing to offer Tecnomatix's open standalone MPM solutionintegrated with the PLM environment of choice for its customers. Inaddition, the companies intend to announce additional technologyenhancements later this year.

To learn more about the agreement, visit the UGS and Tecnomatix websites.