CIMdata PLM Industry Summary Online Archive
27 May 2004
Company News
UGS Launches Operation as Independent Company
UGS announced the closing of its acquisition by a private equity group of Bain Capital, Silver Lake Partners and Warburg Pincus. The company also launched operations as an independent software business under a new corporate brand - UGS.
The companies announced on March 14 a definitive agreement with EDS to purchase UGS for $2.05 billion in cash. The transaction represents the largest private equity investment ever made in a technology company.
"Today is a watershed day for UGS and our clients as we move forward as an independent software company in partnership with our new sponsors," said UGS Chairman, CEO and President Tony Affuso, who will chair the new company's board. "This transaction represents not only an endorsement of UGS' strategy and leadership position, but also of the PLM industry as a whole. Under the UGS brand, which we believe best leverages our company's equity as a strong and familiar brand with our clients in the PLM space, we believe we are ideally positioned for continued long-term growth."
In conjunction with the closing of the private equity transaction, UGS also today announced the launch of its new independent website, http://www.ugs.com
UGS delivers integrated technology and services supporting the entire lifecycle of a product - from concept and development to distribution and service. In the first quarter of 2004, UGS reported 14.8 percent revenue growth and 10.3 percent growth in operating profit over the same period a year earlier. UGS' first quarter '04 performance marked the third consecutive quarter of strong revenue and operating profit growth as compared to the same period a year earlier.
For the last 12 months ending March 31, 2004, UGS reported revenue of US$927 million, adjusted EBITDA of US$215 million and net income of US$106 million.
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