NEEDHAM, Mass., 17 June 2014. Managers at PTC (Nasdaq: PTC) have signed a definitive agreement to acquire Atego, a developer of model-based systems and software engineering applications based in Cheltenham, U.K., for approximately $50 million in cash.
The acquisition will enhance PTC's portfolio of product lifecycle management (PLM) and application lifecycle management (ALM) products, and strengthen “PTC's commitment to supporting its customers' systems engineering initiatives with powerful modeling capabilities,” says a spokesperson.
"Today, the competitive landscape is characterized by complexity, and manufacturers must employ a holistic approach when designing smart, connected products," says Brian Shepherd, EVP Enterprise Segments, PTC. "For customers in our focused markets, there is increasing importance for multifunctional teams to work in concert while modeling the interdependencies of mechanical, electrical, and software engineering components. The acquisition of Atego extends our existing ALM and PLM technologies, and directly supports customers' needs to integrate multiple systems engineering disciplines."
Atego's Model-Based Systems Engineering (MBSE) solution connects requirements engineering, architecture modeling, physical product definition, and system verification functions. In doing so, it drives efficiencies and process standardization, enabling distributed teams to build digital models of complex systems collaboratively, while managing system variability and enabling reuse, officials explain. “These capabilities are increasingly important in a world of smart, connected products in which manufacturers must concurrently develop systems that consist of sophisticated mechanical, electrical, and software components.”
"This is an acquisition that makes perfect sense for PTC," according to Peter Bilello, president of CIMdata. "Products are no longer simply mechanical systems. And model-based systems engineering supports collaboration across multiple disciplines (mechanical, electrical, software, and controls) and other enterprise functions (manufacturing, purchasing, finance, service, and project management). CIMdata believes that MBSE will become the pervasive paradigm for product development, supporting and promoting a systems thinking mindset."
Over the past 12 months, Atego achieved approximately $20 million in revenue. Based on the expected closing of the acquisition, PTC expects to realize approximately $5 million in revenue from the Atego business in fiscal Q4 2014. For fiscal year 2014, the acquisition is expected to be neutral to PTC's non-GAAP EPS.
The transaction is subject to satisfaction of customary closing conditions, and is expected to be completed in PTC's fiscal Q4 2014.