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CAD solid modelling software
News Release from: Dassault Systemes
Edited by the Manufacturingtalk Editorial
Team on 07 March 2006
Dassault Systemes to Acquire MatrixOne
Dassault Systemes and MatrixOne have jointly announced a merger agreement pursuant to which Dassault Systemes would acquire MatrixOne for $7.25 per share in cash
Dassault Systemes (DS) and MatrixOne have jointly announced a merger agreement pursuant to which Dassault Systemes would acquire MatrixOne for $7.25 per share in cash, representing a total transaction value of approximately $408 million The proposed acquisition, which has been approved by both companies' Boards of Directors, is expected to be completed by the end of the 2006 second quarter, subject to customary closing conditions, including approvals by MatrixOne's shareholders and regulatory authorities
This article was originally published on Manufacturingtalk on 2 Aug 2006 at 8.00am (UK)
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MatrixOne is a leading global provider of collaborative PLM software and services to medium-to-large organisations including companies across the high tech, consumer products and medical devices industries among others.
More than 850 companies, representing hundreds of thousands of users, work with MatrixOne's solutions, including industry leaders such as Alcatel, Celestica, GAP, General Electric, IBM, Intel, Johnson and Johnson, Nokia, Philips, Procter and Gamble, Qualcomm, Sony Ericsson, STMicroelectronics and Toshiba.
MatrixOne has 488 employees and 26 offices in North America, Europe and Asia Pacific.
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For its most recent fiscal year ended July 2, 2005, MatrixOne reported total revenues of $124.1 million.
Cash and cash equivalents totaled $98.6 million at December 31, 2005.
Bernard Charles, Dassault Systemes' President and Chief Executive Officer, commented, "The acquisition of MatrixOne will extend our reach, enabling us to bring the value of PLM to a significantly expanded audience across a broader range of industries.
The combination will enable a new level of integration and will make use of the best-in-class technologies, products and skills of both companies.
Moreover, this strategic action will further advance our roadmap to provide on-demand service-oriented solutions.
From all perspectives this combination is very complementary and, will result, following the closing, in an excellent fit that should provide significant benefits to our combined customers, partners and employees.
We are, therefore, clearly committed to further enhancing MatrixOne, ENOVIA and SMARTEAM to serve the broad range of customers' demands.
"In summary, I believe we will be well positioned to offer customers the most advanced vision and most comprehensive offering in the marketplace.
Our combined product portfolio will address a wide spectrum of product development requirements for companies across many industries.
And from an integration perspective, our combined portfolio will provide products for teams, for the extended enterprise and for multi-enterprise integration." Mark O'Connell, MatrixOne President and CEO stated, "On behalf of all MatrixOne employees, we are excited to join Dassault Systemes and believe the combination will make good use of the unique value both companies bring to the market.
Together we will extend our technologies, industry solutions and deep understanding of our customers to enable them to maximise their new product innovations." Thibault de Tersant, Dassault Systemes' Executive Vice President and CFO, commented, "From a financial perspective, the acquisition is expected to have a neutral impact on our Non-GAAP EPS in 2006 and is expected to be accretive to our Non-GAAP EPS in 2007.
We anticipate a one percentage point negative impact on our 2006 and 2007 Non-GAAP operating margin, with no further impact anticipated after 2007.
We are confident that, working together, we can accelerate the pace of MatrixOne's growth at both the top-line and bottom-line." Dassault Systemes estimates that the deferred revenue write-down, as part of purchase accounting adjustments, may approximate $20 million for the first twelve months following the completion of the proposed acquisition of MatrixOne.
Dassault Systemes believes Non-GAAP EPS and Non-GAAP operating margin information, which is not in conformity with US GAAP, is helpful information in order to better understand its past and future performance.
In addition, Dassault Systemes' management uses this information in its planning.
Non-GAAP EPS excludes deferred revenue adjustments, acquisition costs, share-based compensation expenses and any potential restructuring costs.
This information provided by Dassault Systemes may not be comparable to similarly titled measures employed by other companies.
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