PTC Completes Acquisition of CoCreate3 Dec, 2007
Company plans to continue developing and selling CoCreate products as stand-alone offerings, as well as integrate acquired products into PTC Product Development System.
PTC announced it has completed its acquisition of CoCreate Software for approximately $250 million net cash acquired excluding transaction fees.
"The acquisition of CoCreate enables PTC to broaden its customer base, its distribution channel, and its product offering," said C. Richard Harrison, president and chief executive officer of PTC. "Additionally, we expect the acquisition will be immediately accretive to our non-GAAP operating margins and earnings."
PTC states that it plans to maintain and further develop all CoCreate products, including OneSpace Modeling, OneSpace Drafting, OneSpace Model Manager, OneSpace Drawing Manager, OneSpace Live!, and OneSpace.net, as standalone offerings. Additionally, the company plans to integrate CoCreate solutions into the PTC Product Development System.
PTC financed the acquisition and related expenses with a combination of $50 million cash and $220 million in debt from its existing revolving credit facility. PTC states that it expects to repay the loan within two years. Wachovia Securities acted as exclusive financial adviser to PTC in the transaction. CoCreate was a portfolio company affiliated with HBK Capital Management.