Siemens Acquires PLM Software Company UGS For $3.5 Billion; Plans IPO For Auto-Supply Unit

Siemens pays $3.5 billion for Texas-based PLM supplier; also plans IPO for automotive supply business, Siemens VDO Automotive (SV).

Siemens Automation and Drives (A&D) Group said Thursday it acquired UGS Corp., a software producer, for $3.5 billion.

UGS, headquartered in Plano, Texas, markets Product Lifecycle Management (PLM) systems and had sales of approximately $1.2 billion in fiscal 2005.

The combination of UGS' PLM software with Siemens’ automation technology will allow Siemens to offer its customers fully integrated systems for creating digital factories, the company said.

Separately, Siemens AG plans an initial public offering of its automotive supply business, Siemens VDO Automotive (SV), in which Siemens would hold a majority stake. The SV business had sales of more than $12 billion in fiscal 2006.

The IPO would provide SV with the needed financial resources and greater entrepreneurial flexibility for ensuring further sustainable and profitable growth, according to Klaus Kleinfeld, president and CEO of Siemens AG.

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