CIMdata PLM Industry Summary Online Archive

1 April 2005

Acquisitions

UGS Corp. Completes Acquisition of Tecnomatix; Creates the Number One Digital Manufacturing Solutions Provider in the PLM Market

UGS Corp . and Tecnomatix Technologies Ltd. announced that UGS has completed its acquisition of all of the outstanding equity of Tecnomatix for approximately $228 million in cash, or $17.00 a share, net of any applicable tax withholding obligations.

The acquisition, UGS' fourth since launching independent operations in May 2004, positions UGS as the number one provider of digital manufacturing solutions in the PLM industry. CIMdata, a leading PLM consulting and research firm, estimates that investments in digital manufacturing initiatives by industrial companies are expected to grow by more than 25 percent annually over the next three years.

UGS will market Tecnomatix as its digital manufacturing brand to include both TecnomatixT and former E-factoryT software. The company will offer a fully integrated solution of Tecnomatix MPM to UGS Teamcenter® software users while continuing to offer Tecnomatix' leading open standalone MPM solution integrated with the PLM environment of choice for its customers. In addition, UGS plans to announce additional digital manufacturing-related technology enhancements later in 2005.

"We extend a warm welcome to the Tecnomatix customers who are now part of the UGS family. With the acquisition complete, the value our customers have received will be even further enriched by the range of solutions, scalability and commitment to service that our newly merged companies will provide," said Tony Affuso, chairman, CEO and president of UGS. "The Tecnomatix acquisition combines complementary market presence and world-class technology and enhances UGS' ability to deliver premier software solutions to our customers in the digital manufacturing space. It represents a natural but significant step in UGS' digital manufacturing strategy and another strategic milestone as we continue to expand our suite of software solutions in order to provide value across a product's entire lifecycle."

Tecnomatix Shareholders

Tecnomatix is now a wholly-owned subsidiary of UGS and its shares are no longer publicly traded. Tecnomatix shareholders will receive materials advising them of the acquisition's completion and payment procedures. Payment will be made upon proper presentation of certificates formerly representing Tecnomatix shares to the paying agent, American Stock Transfer and Trust Company, and an accurately completed letter of transmittal.

Digital Manufacturing Webcast

On April 20, IndustryWeek will host a webcast focused on digital manufacturing. UGS will be a presenter during the webcast along with an industry analyst and a digital manufacturing customer. Visit https://www.ugs.com/forms/webcast_dig_manufacturing.shtml for more information or to register

Tecnomatix enables organizations to design, simulate and execute production processes. Digital manufacturing is a critical component of product lifecycle management, helping businesses increase profitability by improving the way products are built. More than 5,000 companies worldwide-including BMW, Lockheed-Martin and Anheuser-Busch-are using Tecnomatix to reduce operating costs, accelerate product introductions and shorten time to volume while maintaining high levels of product and process quality. Tecnomatix leverages the UGS Open Manufacturing BackboneT technology platform that facilitates integration with other UGS solutions as well as third-party systems. With Tecnomatix, UGS brings together best-of-breed digital manufacturing solutions, deep process expertise and a proven knowledge management foundation spanning the entire product lifecycle. For more information visit: http://www.ugs.com/tecnomatix .

 

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