MarketWatch reports that PTC is looking for a buyer. Price:
$2 billion $2.4-2.8 billion. If true, that price is cheap. The company's market capitalization today is $2.4 billion (news of the sale jumped the share price by 10%), and revenues from its last four quarters was $1.03 billion. A more likely sale price should be at least $3 billion.
On June 30, I reported that PTC executives set up a poison pill:
Should PTC ever be acquired, top executives will pay themselves $20 million. CEO Dick Harrison gets the biggest slice of gold-flavored pie, some $15.5 million. The other execs have to make do sharing the remaining $4.5 million.
Who would buy PTC? The executive vice president of one CAD company told me he was not interested in PTC's technology, only in its customer list.
Are we going to see the entry of another giant like Siemens? Or will one of the major CAD vendors put on extra weight?
I don't think that any CAD vendor can afford PTC, possibly not even Autodesk with its $1 billion cash in the bank.
Instead, this would be another Siemens-like acquisition. The tipoff: that PTC hired investment bank Goldman Sachs Group to find a buyer. That would not be necessary for a CAD vendor making the purchase; all the executives of major CAD companies are on speaking terms with each other, and a deal could easily be spun sipping margaritas under the hot Arizona sun during COFES.
With a Siemens-like deal, we would see an auto or airplane manufacturer buying up PTC.
Oh dear! What if nobody wants to buy PTC?
An industry analyst tells me the asking price is $2.4-$2.8 billion. Likely buyers include SAP or a private equity firm. Among CAD firms, only Autodesk might be an interested party.
As for the poison pill, it is more likely a golden handshake. The handshake's $20 million is small compared to the $130 million to be earned by sales agent Goldman Sachs Group.