Free Magazine Subscription
Printer-friendly version
Email to a Friend
In a major industry move, Siemens is to expand its industrial software portfolio through a definitive agreement to acquire UGS Corp, a leading provider of product lifecycle management (PLM) software and services. The agreement was made between Siemens and the current owners Bain Capital, Silver Lake Partners and Warburg Pincus. The purchase price amounts to US $3.5 billion, includingassumption of existing debt.
The activities of UGS are to be assigned to the Siemens Automation and Drives Group (A&D). A&D will thus become the first supplier for the manufacturing industries to provide an end-to-end software and hardware portfolio encompassing the complete lifecycle of products andproduction facilities.
“With the acquisition of UGS, we combine its competence in the sector of digital factories with our leading know-how in industrial automation. This combination makes our customers’ processes faster, better and more cost effi cient. With the unique combination, we underscore our position as a trendsetter in automation systems and bring this business into a new dimension,” said Klaus Kleinfeld, President and CEO of Siemens AG.
‘Clear game-changer’
“The combination of Siemens and UGS is a clear game-changer in the global PLM industry due to our shared vision of ‘Totally Integrated Automation,” said Tony Affuso, Chairman, CEO and President of UGS. “Our customers win through the backing of the long-term security of their system investments provided by one of the world’s largest and most successful and innovative companies.”
The world market for PLM software and services has a volume of approximately US$13 billion with projected yearly growth rates of 7 to 9 percent. From a technological point of view, the market will be infl uenced by the convergence of product lifecycle, manufacturing and enterprise information technologies in many segments, with the previous islands of product development, manufacturing and service software increasingly transforming into one integrated systems business, said Siemens.
