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Report: Siemens set to buy UGS for $3.5B

  |   Jan. 24, 2007 at 4:43 PM
PLANO, Texas, Jan. 24 (UPI) -- Siemens AG is poised to buy software maker UGS Corp. of Texas for $3.5 billion, including assumed debt, a report said Wednesday.

Siemens would acquire the provider of software that helps companies manage new products from inception to production from private-equity firms Bain Capital, Silver Lake Partners and Warburg Pincus, The Wall Street Journal reported.

UGS of Plano, Texas, reported 2006 third quarter revenue of $295.5 million on sales of its product life-cycle management software and services, its Web site says.

Siemens, Germany's largest conglomerate, has been reshuffling its portfolio since early 2005, when Klaus Kleinfeld became chief executive and vowed to bring profit margins in line with such peers as General Electric by April 2007.

It has invested heavily in its factory-automation business, one of its largest and most profitable units, which runs businesses similar to UGS.

© 2007 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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