UGS takes Tecnomatix in house

UGS, the PLM (product lifecycle management) IT company that separated from EDS in May last year, is to acquire simulation and ‘digital manufacturing’ software partner Tecnomatix. It’s IGS’ fourth technology acquisition since independence, and the deal is worth $228 million in cash, or $17.00 a share: it should complete before spring. The companies intend then to offer integrated Tecnomatix MPM (manufacturing process mangement) software to UGS Teamcenter PLM users, while continuing to offer Tecnomatix’ standalone MPM integrated with third party PLM environments. UGS and Tecnomatix have been working together since 2002, and UGS says it will now speed up its integration work so that Tecnomatix’s systems run with UGS’ Open Manufacturing Backbone (OMB), and its earlier E-factory digital manufacturing system. “Integrating Tecnomatix into UGS is a natural but significant step in our digital manufacturing strategy and should accelerate our ability to deliver this software on behalf of UGS and Tecnomatix customers,” says Tony Affuso, chairman, CEO and president of UGS. He says existing users can expect to see even greater functionality and potential for business benefit as a result of the integration – and of enhancements due by the end of 2005. “The addition of Tecnomatix to the UGS family is a major step forward in that effort,” insists Affuso. “Along with sustained internal spending on research and development, these acquisitions have added significant value to our technology platform, which was already second to none in the PLM industry.”