With this unique combination, we will underscore our position as a trendsetter in automation systems and propel this business into a new dimension,” said Klaus Kleinfeld, President and CEO of Siemens AG. This combination makes our customers’ processes faster, better and more cost efficient. “With the acquisition of UGS, we can combine its competence in the sector of digital factories with our leading know-how in industrial automation. Siemens is thus the first company in the world able to offer its customers fully integrated solutions for creating digital factories that will give the customers decisive competitive advantages through reduced costs and improved quality assurance.
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.
The market for PLM software and services has an annual volume of around US$13 billion and growth rates between 7 and 9 percent. The company is one of the world’s market leaders for Product Lifecycle Management (PLM), a critical part of industrial manufacturing that allows the digital control of product development and manufacture. UGS generated just under US$1.2 billion in sales and an EBITDA of US$241 million in fiscal 2005. This move would give SV the necessary financial resources and greater entrepreneurial flexibility for ensuring further sustainable and profitable growth. In addition, Siemens AG plans an IPO of its automotive supply business Siemens VDO Automotive (SV), in which Siemens would hold a majority stake. The transaction is subject to approval by the relevant authorities.
The purchase price for the deal is around US$3.5 billion including debt. As a trendsetter in industrial automation, A&D will now be able to offer its customers worldwide solutions for creating digital factories. software producer UGS Corp., of Plano, Texas, the Siemens Automation and Drives (A&D) Group will expand its product spectrum in automation technology to include industrial software for planning, design and simulation in Product Lifecycle Management (PLM).
Siemens A&D acquires software producer UGS for US$3.5 billion – IPO for Siemens VDO Automotive planned