Update to the update: Read about who's buying UGS PLM Solutions at our latest post: Equity Firms Buy UGS PLM Solutions.
The sale of EDS' CAD division (recently renamed "UGS PLM Solutions") has been one of the most popular news items on this Weblog -- as well as being the subject of commentary throughout our industry. Moments ago, the company released a clarification of the terms of sale. Paraphrasing:
There is no intention to sell to a competitor: "EDS is talking to private equity firms and IPO underwriters only, and not to UGS PLM Solutions competitors." Maybe competitors are not interested or can't afford the two-billion pricetag.
There could be two parts to the sale: "The company is considering the private sale of up to 100% of its subsidiary, as well as the sale of a minority stake in the unit through an IPO." One hundred percent will be sold, but perhaps in two parts.
There is a high price attached: "EDS expects the valuation would exceed two times the unit's 2003 revenues of approximately $900 million." That's the asking price; the buying price will vary, depending on demand.
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