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Commentaries & Highlights

Sunday, June 06, 2004

MatrixOne to acquire Synchronicity: Good news for the overall PLM industry (Commentary)

ANN ARBOR, Michigan, June 7, 2004— Today, MatrixOne announced that they have reached a definitive agreement to acquire Synchronicity, a leader in product information management for the EDA industry. This is a significant event for both parties and good news for the overall PLM industry. It is consistent with MatrixOne's focus over the last couple of years to differentiate themselves in the PLM industry by providing solid PLM support for companies that have significant electronics-design content in their products.

While MatrixOne has sustained solid PLM support to companies in a variety of industries, their increasing focus on electronics design content has been clear. Their relationship with Cadence (announced last year) involved a solution focused heavily on product information management in PCB-based design environments. Now, their acquisition of Synchronicity provides a solid capability for IC-based design environments as well. The combination of these efforts should provide them a substantial offering for any company that has a major focus on electronics-based products and a solid boost in their overall positioning in the PLM industry.

For Synchronicity, this acquisition offers an opportunity for their customers to have a clearer path to enterprise PLM, and access to a MatrixOne customer base as well. MatrixOne states that the acquisition will add approximately 20% to the overall MatrixOne customer base, and should add substantially to MatrixOne's software revenues.

For the PLM industry, this shows a significant commitment to provide more substantial PLM support for electronics-based product design, with a clear combination of both enterprise and workgroup support. It should also raise the "competitive bar" for PLM suppliers who compete for PLM business within companies that have a major focus on electronics-based product design. This will force development of improved solutions from any PLM supplier focused on these market issues. The overall long-term winners will be the customers who benefit from these more comprehensive solutions. We believe this is a positive event for the industry, and for both Synchronicity and MatrixOne.

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