NEW YORK -- Manufacturing software maker UGS said on Tuesday it would buy Tecnomatix Technologies Ltd. for $228 million, further expanding its product line into engineering software for the aerospace, automotive and electronics industries.
UGS, which was sold by Electronic Data Systems to private equity firms last year, will pay $17 a share for each Tecnomatix share, representing a 39 percent premium to Tecnomatix's average closing price over the last 60 trading days and a 12 percent premium over Monday's Nasdaq close.
Tecnomatix said its board had unanimously supported the deal, which is expected to be completed by the end of the first quarter, subject to getting regulatory approvals.
UGS, which makes software to build Boeing aircraft, Ford cars and other equipment, has been a customer of Israel-based Tecnomatix since 2002. The deal marks UGS' fourth technology acquisition since the company was sold last May.