For some reason, UGS felt it necessary to complain about Dassault buying MatrixOne. Here are the reasons.
UGS believes that the premium that Dassault is willing to pay for MatrixOne is well beyond the point of MatrixOne’s value, particularly given that MatrixOne has lost money for 16 consecutive quarters and that the acquisition will be immediately dilutive to Dassault earnings.
Even Dassault admits that it will have to reduce MatrixOne operating expenses by $25 million to make the acquisition accretive to earnings over time. UGS believes that the company’s history of consistent operating losses and corresponding expense reductions leaves only R&D and sales for future reductions, thus further minimizing the strategic value of the asset.
UGS was aware that MatrixOne was considering a sale and determined that the addition of MatrixOne did not offer us a commercial opportunity to extend the breath or depth of our market-leading portfolio of applications in collaborative Product Data Management (cPDM).
UGS is pleased to see Dassault recognize that its current cPDM offerings have failed to meet customer needs. UGS recognized the value of having a common, integrated and open cPDM platform long ago and has been delivering on this vision for several years – a strategy that has resulted in UGS generating revenues and market share more than twice those of its competitors combined.
Why the pouting?
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