SIEMENS PRESS RELEASE
Siemens A&D
acquires software producer UGS for US$3.5 billion – IPO for Siemens VDO
Automotive planned
Munich, Jan 25, 2007
With its acquisition of U.S. software producer UGS Corp., of
Plano, Texas, the Siemens Automation and Drives (A&D) Group will expand its
product spectrum in automation technology to include industrial software for
planning, design and simulation in Product Lifecycle Management (PLM). As a
trendsetter in industrial automation, A&D will now be able to offer its
customers worldwide solutions for creating digital factories. The purchase
price for the deal is around US$3.5 billion including debt. The transaction is
subject to approval by the relevant authorities.
In addition, Siemens AG plans an IPO of its automotive
supply business Siemens VDO Automotive (SV), in which Siemens would hold a
majority stake. This move would give SV the necessary financial resources and
greater entrepreneurial flexibility for ensuring further sustainable and
profitable growth.
UGS generated just under US$1.2 billion in sales and an
EBITDA of US$241 million in fiscal 2005. The company is one of the world’s
market leaders for Product Lifecycle Management (PLM), a critical part of
industrial manufacturing that allows the digital control of product development
and manufacture. The market for PLM software and services has an annual volume
of around US$13 billion and growth rates between 7 and 9 percent. Combining the
PLM solutions of UGS with Siemens’ automation technology will enable Siemens to
provide integrated offerings covering the entire product life-cycle for the
first time. Siemens is thus the first company in the world able to offer its
customers fully integrated solutions for creating digital factories that will
give the customers decisive competitive advantages through reduced costs and
improved quality assurance.
“With the acquisition of UGS, we can combine its competence
in the sector of digital factories with our leading know-how in industrial
automation. This combination makes our customers’ processes faster, better and
more cost efficient. With this unique combination, we will underscore our
position as a trendsetter in automation systems and propel this business into a
new dimension,” said Klaus Kleinfeld, President and CEO of Siemens AG. A&D
and UGS, two world-class companies which have successfully worked together in
the past, will join forces and generate substantial growth synergies.
At the same time, Siemens plans an initial public offering
(IPO) of SV. With sales of €10 billion in the past fiscal year, SV is one of
the largest and most successful Siemens Groups. Since being established at
Siemens more than 20 years ago, the automotive Group has rapidly grown an
average of ten percent a year through organic growth and acquisitions. SV met
its margin target set as part of Operation 2003 and has continued to improve
its profitability in a challenging competitive environment. “An IPO would give
SV greater flexibility, further reinforce its strong position in the market for
automotive electronics, and actively tap the market consolidation opportunities
for its growth,” stated Kleinfeld. The expansion of the very successful and
profitable, yet capital-intensive business of SV has long been the subject of
intensive discussion at Siemens. “We are convinced that a listing of SV would
be a highly attractive option for continuing to drive the further expansion of
SV. This would write a new chapter in the SV success story and open up enormous
future opportunities for the company and its employees,” said Kleinfeld.
Preparations for the IPO will be initiated immediately. Further details have
not yet been finalized.
The Siemens Automation and Drives Group (A&D),
Nuremberg, Germany, is the leading manufacturer in this field worldwide.
Products supplied by A&D include standard products for the manufacturing
and process industries and for the electrical installation industry as well as
system solutions, for example for machine tools, and solutions for whole
industries such as the automation of entire automobile factories or chemical
plants. Supplementing this range of products and services, A&D also offers
software for linking production and management (horizontal and vertical IT
integration) and for optimizing production processes. A&D employs around
70,600 people worldwide and in fiscal year 2006 (to September 30) earned a
Group profit (based on US GAAP) of €1.572 billion on sales of €12.848 billion,
and posted orders of €14,108 billion.
Siemens VDO Automotive, a Group of Siemens AG, is one of the
world’s leading suppliers of electronics and mechatronics for the automotive
industry. With its products, it enables individual mobility and the efficient
transportation of goods by road in modern societies. As development partner of
the automotive industry, the company manufactures automotive electronics and
mechatronics for reducing emissions, enhancing safety and driving comfort, and
keeping drivers informed and in touch with the outside world. Siemens VDO
generated sales of over €10 billion in fiscal year 2006 (to September 30) and
Group profit of €669 million (based on US GAAP).
Siemens (Berlin and Munich) is a global powerhouse in
electrical engineering and electronics. The company has around 475,000
employees (including “discontinued operations”) working to develop and
manufacture products, design and install complex systems and projects, and
tailor a wide range of services for individual requirements. Siemens provides
innovative technologies and comprehensive know-how to benefit customers in 190
countries. Founded more than 155 years ago, the company focuses on the areas of
Information and Communications, Automation and Control, Power, Transportation,
Medical, and Lighting. In fiscal 2006 (ended September 30), according to US
GAAP, Siemens had sales of €87.3 billion and net income of €3.033 billion.
Further information is available on the Internet at: www.siemens.com.
(Contacts removed)
