Business

PTC agrees to buy UK product lifecycle management firm for $50m

PTC, a Needham-based maker of product lifecycle management software, said Monday that it has agreed to acquire Atego for $50 million in cash.

Based in the UK, Atego makes complementary lifecycle management products. Such products manage the entire lifecycle of a product from its inception on the drawing board, through engineering design and manufacturing as well as distribution.

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Over the past 12 months, Atego had revenues of about $20 million, PTC said in a press release.

“Today the competitive landscape is characterized by complexity, and manufacturers must employ a holistic approach when designing smart, connected products,” PTC executive vice president Brian Shepherd said in a statement. “For customers in our focused markets, there is increasing importance for multifunctional teams to work in concert while modeling the interdependencies of mechanical, electrical, and software engineering components. The acquisition of Atego extends our existing ALM and PLM technologies, and directly supports customers’ needs to integrate multiple systems engineering disciplines.”

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PTC said it expects to realize about $5 million in revenue from the Atego business in its fourth quarter for the 2014 fiscal year. For fiscal year 2014, the acquisition is expected to be neutral to PTC’s non-GAAP earnings per share, the company added.

For fiscal 2013, PTC reported revenue of nearly $1.3 billion.

Chris Reidy can be reached at reidy@globe.com.
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