Antitrust authorities approve acquisition of UGS Corp. by Siemens
Following standard antitrust investigations, the European Commission has approved unconditionally the acquisition of UGS Corp. by Siemens AG. As a result, the US software company can now be integrated as “UGS PLM Software” division into the Siemens Automation and Drives (A&D) Group. Siemens expects to close the acquisition by early May. The US antitrust approval by the Federal Trade Commission was already issued in February 2007. The total purchase price agreed with the previous owner of UGS Corp., Bain Capital, Silver Lake Partners und Warburg Pincus, amounts to USD 3.5 billion including assumption of existing debt.
“The acquisition of UGS is a decisive step to provide our customers with integrated systems and solutions from a single source. We will create a unique, integrated company which combines all the technologies required to cover the entire value chain from development, production and sales to service”, stated Helmut Gierse, President of Siemens A&D. ”The positive feedback we have received from our customers throughout the acquisition process makes us confident that by integrating UGS technologies we will not only gain shares in the fast-growing market sector for PLM software, but we will also further expand our position as the worldwide leading industrial automation company"
The trend towards geographically distributed production facilities and globally networked production across company boundaries will continue increasingly. For those included in the value chain - product designers, machine builders and engineering companies, as well as suppliers, service providers and distributors - readily available information is the key to business success. With a global workforce of 7,300 and more than 46,000 customers UGS is a worldwide leader in PLM (Product Lifecycle Management) software and services. UGS’ software portfolio covers the entire array of collaborative product data management, computer-aided design and digital manufacturing simulation (’Digital Factory’). In fiscal year 2006 the company posted sales of USD 1.22 billion.
In the course of the acquisition UGS will be integrated into the Siemens Automation and Drives Group as,UGS PLM Software’ division. From a company law point of view the company will be incorporated into Siemens Corp. with headquarters remaining in Plano, Texas. The international affiliates of UGS Corp. will be integrated into the existing Siemens regional companies step-by-step.
The Siemens Automation and Drives Group (A&D), Nuremberg, Germany, is the leading manufacturer in this field worldwide. Products supplied by A&D include standard products for the manufacturing and process industries and for the electrical installation industry as well as system solutions, for example for machine tools, and solutions for whole industries such as the automation of entire automobile factories or chemical plants. Supplementing this range of products and services, A&D also offers software for linking production and management (horizontal and vertical IT integration) and for optimizing production processes. A&D employs 70,600 people worldwide and in fiscal year 2006 (to September 30) earned a group profit of €1.572 billion on sales of €12.848 billion and orders of €14.108 billion, according to U.S. GAAP. Further information about A&D is available in the Internet at www.siemens.com/automation
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