CIMdata PLM Industry Summary Online Archive
23 December 2004
Acquisitions
RAND Worldwide Finalizes Arrangements for the Sale of Selected European Subsidiaries to Dassault Systèmes
Rand A Technology Corporation, operating as RAND Worldwide, announced that it has entered into a definitive purchase and sale agreement with Dassault Systèmes S.A. of France pursuant to which certain of RAND Worldwide's European subsidiaries would be acquired by Dassault Systèmes (see joint Dassault/Rand Press Release dated October 26, 2004). Pursuant to the definitive agreement, Dassault Systèmes will acquire RAND Worldwide subsidiaries in the United Kingdom, Sweden, Germany and Switzerland, plus the subsidiary Rand Technologies C.I.S., Inc., as well as 10% of the shares of Rand North America (with the result that Rand North America will then be owned 70% by Dassault and 30% by RAND Worldwide), for total proceeds of approximately euro 32 million (approximately C$50 million).
The transaction will significantly enhance RAND Worldwide's financial position (through the elimination of all outstanding debt owed to Dassault Systèmes) and will provide RAND Worldwide with a solid foundation for profitable growth. Under the terms of the definitive agreement, RAND Worldwide would transfer the acquired subsidiaries and approximately 240 employees to Dassault Systèmes.
The transaction is subject to customary closing conditions, including approval from the German merger control authority. It is expected that the transaction will close in January 2005, subject to receipt of clearance from the German merger regulatory authority.
"This transaction provides RAND Worldwide with a much stronger financial position, and will significantly strengthen our balance sheet in the new year upon closing", said Frank Baldesarra, President and Chief Executive Officer of RAND Worldwide. "At the same time, I am confident that this team of professionals who will be joining Dassault will provide our customers with continuity and the benefits of our long-lasting relationships."
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