Siemens expands product offering with UGS acquisition

29 January 2007

Siemens Automation and Drives has made a definitive agreement to acquire a provider of Product Lifecycle Management (PLM) software and services, in a bid to expand its industrial software portfolio.

The purchase price of UGS Corp. amounts to US $3.5 billion, and Siemens A&D president, Helmut Gierse, said more than 3000 UGS software engineers would join the group.

The agreement was made between Siemens and current owners Bain Capital, Silver Lake Partners and Warburg Pincus.

Texas based PLM provider, UGS, has a global workforce of 7,300 and over 46,000 customers spanning 62 countries. PLM is a mission-critical, enterprise business platform that enables companies to digitally create, build and manage their products. UGS began its relationship with Siemens in 2003 with joint projects addressing digital manufacturing technology.

Klaus Kleinfeld, president of Siemens, said: “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 efficient.”

Gierse continued: “Seamless flow of information and data enable collaboration across the whole value chain. This is becoming crucial to increase productivity in the manufacturing industries where the competitive pressure is constantly rising.

“With the combined portfolio of A&D and UGS, our customers will be able to enter a complete new scale of efficiency, whether they are manufacturers, engineering service partners, system integrators or machine builders.

“Integrated solutions will lead to reduced production costs, higher product quality, shorter time to market and increased flexibility toward market trends.”

Tony Affuso, chairman, CEO and president of UGS, concluded: “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.”

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