PTC plans on buying CoCreate for US$250 million from HBK Investments of Dallas TX. Overpriced? Perhaps. But here's the fallout:
-- non-history-based 3D MCAD modeling is now for real.
-- expect Dassault and Autodesk to make reactionary acquisitions.
-- SpaceClaim would be cheap, probably pick it up for under $25 million, the kind of price tag Carl Bass likes.
Just as editor Martyn Day notes that PTC can no longer claim to have the only unified CAD solution that scales from desktop to enterprise, the company provides this spin:
PTC recognizes that there is a broad range of accepted modeling approaches in the industry. By adding CoCreate solutions to its product portfolio, PTC will become the first and only vendor in the market to offer a full complement of design solutions.
The price seems to in line. During PTC's conference call, the CFO reported that:
CoCreate's annual revenue of approximately $80 million.
This means PTC paid about 3.1x earnings, which is about right. PTC will pay with $50 million of its cash reserve, and then borrow $210 million to pay for the remainder