EDS buys SDRC to bolster product lifecycle management

IT services provider Electronic Data Systems Corp. (EDS) is set to spend over US$1 billion to purchase Structural Dynamics Research Corp. (SDRC) and one of its subsidiaries, a move aimed at strengthening EDS' software and services for managing the process of developing products, the companies said Wednesday.

EDS is set to pay $25 per share for Structural Dynamics, or $950 million in cash, as well as purchasing the 14 percent of its Unigraphics Solutions (UGS) subsidiary that is publicly held. The offering to Unigraphics shareholders will be $27 per share, worth a total cash purchase of about $170 million, the companies said in a statement.

By combining with Milford, Ohio-based SDRC, EDS plans to provide software and services to digitally produce and share product planning, design, manufacturing and distribution information for collaboration over corporate networks and the Internet, a process the companies call product lifecycle management.

SDRC and UGS will be combined under the UGS name and will become a new business line under EDS. Tony Affuso, the current president and chief executive officer of UGS, will be president of the new line of business. The UGS line is expected to surpass $1 billion in annual revenues, the companies said.

EDS will gain 7,000 clients from the SDRC acquisition, 85 percent of which will be new to EDS, including Ford Motor Co., Honeywell International Inc. and Finland's Nokia Corp.

Both acquisitions are expected to close in the third quarter pending foreign and U.S. regulatory clearance. EDS also plans to take a one-time charge for purchased in-process research and development in the closing quarter, the companies said.

Join the newsletter!

Error: Please check your email address.

More about Dynamics ResearchEDS AustraliaElectronic Data SystemsFord MotorHoneywellNokiaSDRCStructural Dynamics ResearchUGSUnigraphics Solutions

Show Comments

Market Place