SMT & Inspection | January 28, 2007
Siemens acquires UGS
With its acquisition of U.S. software producer UGS, German based Siemens Automation and Drives Group will expand its product spectrum in automation technology to include industrial software for planning, design and simulation in Product Lifecycle Management.
The purchase price for the deal is around US$3.5 billion including debt. The transaction is subject to approval by the relevant authorities. In addition, Siemens AG plans an IPO of its automotive supply business Siemens VDO Automotive (SV), in which Siemens would hold a majority stake. This move would give SV the necessary financial resources and greater entrepreneurial flexibility for ensuring further sustainable and profitable growth. UGS generated just under US$1.2 billion in sales and an EBITDA of US$241 million in fiscal 2005. The market for PLM software and services has an annual volume of around US$13 billion and growth rates between 7 and 9 percent. Combining the PLM solutions of UGS with Siemens' automation technology will enable Siemens to provide integrated offerings covering the entire product life-cycle for the first time. At the same time, Siemens plans an initial public offering (IPO) of SV, with sales of €10 billion in the past fiscal year.