UPDATE: Dassault Systemes, IBM To Integrate PLM Sales Operations
By Ruth Bender and Geraldine Amiel, Of DOW JONES NEWSWIRES
(Adds detail, executive comment)
PARIS -(Dow Jones)- French software group Dassault Systemes (DSY.FR)and
International Business Machines Corp. (IBM) said Tuesday they signed an
agreement under which Dassault plans to acquire IBM's sales and client support
operations for its product lifecycle management software application portfolio
for approximately $600 million in cash.
The transaction, under which the two companies will integrate their PLM
operations, is expected to be completed in the first half of 2010, subject to
regulatory processes and other requirements.
"The planned integration of the IBM sales force and related business
operations represents the largest investment in our corporate history," Bernard
Charles, president and chief executive of Dassault Systemes, said in a
statement.
The acquisition is expected to be accretive for earnings and operating margin
from 2010, the CEO of Paris-based Dassault Systemes said during a conference
call Tuesday.
As part of their planned global alliance agreement, IBM and Dassault expect to
continue to jointly invest in developing, deploying and supporting client PLM
environments and delivering integrated PLM solutions to their clients worldwide,
the two companies said.
Charles said it was the "right time" to buy IMB's PLM portfolio after having
cooperated for numerous years with IBM in the sector.
"With this announcement, IBM is evolving its partnership with DS to better
align our mutual strengths and better address our clients' PLM needs," Tom Hawk,
general manager, IBM Global Industrial Sector, said in the statement.
Company Web site: www.3ds.com
-By Ruth Bender and Geraldine Amiel, Dow Jones Newswires; +33 1 40 17 17 54;
ruth.bender@dowjones.com; geraldine.amiel@dowjones.com
(END) Dow Jones Newswires
10-27-090334ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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