UGS Eyes Buying MPM Vendor

By Renee Boucher Ferguson  |  Posted 2005-01-10 Print this article Print

UGS, steaming ahead on the acquisition trail, announced last week that it plans to acquire Israeli-based Tecnomatix Technologies for $228 million in cash.

UGS Corp., steaming ahead on the acquisition trail, announced last week that it plans to acquire Israeli-based Tecnomatix Technologies Ltd. for $228 million in cash, marking the companys fourth technology acquisition in less than a year.

Tecnomatix makes MPM (manufacturing process management) software for several verticals, including the automotive, aerospace and electronics industries. Its eMPower software enables the design, simulation and execution of production processes and provides visibility for shop-floor operations. It also counts among its users BMW AG, The Boeing Co., Ford Motor Co. and General Motors Corp.

The deal, subject to regulatory approvals, is expected to close by the end of this quarter.

Tecnomatix is no stranger to UGS, based in Plano, Texas. The two companies have had an alliance since 2002, and Tecnomatixs digital manufacturing software is integrated with UGS Open Manufacturing Backbone software.

Hendrick Motorsports Inc., which has five NASCAR racing teams, also manufactures 700 engines per year. For easier access to information, the company is using UGS Teamcenter to house all its product-related data. Jim McKenzie, HMS applications manager, said he does not currently have the capability that Tecnomatix provides to design and simulate business processes but is confident in UGS direction with Teamcenter. "Everything that theyre incorporating into Teamcenter will be helpful to us in time," said McKenzie in Charlotte, N.C.

Once the deal is completed, UGS plans to integrate Tecnomatix software with its E-factory digital manufacturing suite. At the same time, UGS plans to offer an integrated Tecnomatix software package to its Teamcenter users and offer Tecnomatix eMPower software as a stand-alone suite.

The Tecnomatix acquisition is another step for UGS as it establishes itself as a viable independent PLM (product lifecycle management) software provider. Previously under the umbrella of Electronic Data Systems Corp., UGS bought its way to independence last May.

Click here to read more about UGS and EDS. Since then, the company has acquired software maker D-Cubed Ltd., as well as eBreviate sourcing software and In-Air MRO software, both from EDS, also of Plano.

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