Concurrent with the SDRC purchase, EDS will offer to buy the 14 percent of its Unigraphics Solutions (UGS) subsidiary that is publicly held. The offer to the shareholders of UGS contemplates a price of $27.00 a share or total cash of approximately about $170 million.
The two organizations have complementary product sets. Together they provide digitized Product Lifecycle Management (PLM) software and services. PLM offerings digitally produce and share product planning, design, manufacturing and distribution information for collaboration via local networks and the Internet.
Both companies would be combined under the UGS name to become EDS' fifth line of business. Tony Affuso, current UGS president and CEO, would become president of the new line of business. UGS would be a leader in digitized PLM, with more than $1 billion in annual revenues.
"In the last 24 months, we have seen the beginning of a network-based revolution in the way products are designed, developed and manufactured," said Dick Brown, EDS chairman and CEO. "UGS has given us a window on this change and on the emergence of product lifecycle management, where digitized information is shared instantly and globally. Now is the time to move quickly and decisively to capture opportunities in this space."
Brown noted the SDRC acquisition would bring EDS 7,000 clients, 85 percent
of whom are new to EDS, and greatly expand relationships with companies including
Ford, Mazda, Honeywell, Nissan and Nokia.
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