Auto Electronics

Siemens acquires UGS; plans VDO IPO

Siemens has signed a definitive agreement to acquire CAD/CAM/CAE/PLM software vendor UGS Corp. for $3.5 billion, including assumption of current debt, from current owners, Bain Capital, Silver Lake Partners and Warburg Pincus. The trio acquired UGS in 2004 for $2.05 billion. Siemens plans to assign UGS to its Automation and Drives Group, which provides products and services for automobile factories, among other endeavors.

At its annual meeting Siemens also said it plans an initial public offering (IPO) of its automotive group, Siemens VDO, which had sales €10 billion in the past fiscal year and is one of the firm’s largest and most successful groups. Siemens intends to hold a majority stake in the venture. “An IPO would give (Siemens VDO) greater flexibility, further reinforce its strong position in the market for automotive electronics, and actively tap the market consolidation opportunities for its growth,” said Klaus Kleinfeld, president and chief executive officer of Siemens AG. Continental Corporation has reportedly expressed interest in acquiring a position in the spinoff.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish