Completion of Hexagon's Acquisition of MSC Software

Apr 26, 2017 -- Hexagon AB, a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications, today announced the completion of the previously announced acquisition of MSC Software (“MSC”), a US-based leading provider of computer-aided engineering (CAE) solutions, including simulation software for virtual product and manufacturing process development. Completion of the transaction was subject to regulatory approvals and other customary conditions, which have now been obtained. 

The acquisition strengthens Hexagon’s ability to connect the traditionally separate stages of design and production – integrating real-world data generated on the production floor with simulation data to further improve a customer’s ability to reveal and correct design limitations and production problems prior to manufacturing.

MSC has over 1,200 highly-skilled professionals in 20 countries. Its strong brand and reputation in industries such as automotive, aerospace and electronics spans more than 50 years.

MSC will be a fully owned subsidiary of Hexagon and operate under the division Manufacturing Intelligence.

Key Facts

  • Purchase price of 834 MUSD on a cash and debt free basis (Enterprise Value)
  • In 2016 MSC generated proforma sales of 230 MUSD, with strong profitability and a high percentage of recurring revenue
  • The acquisition will further strengthen Hexagon's smart connected factory strategy to deliver enterprise solutions within manufacturing verticals
  • The transaction is fully financed via bank facilities and Hexagon’s net debt to EBITDA target of 2.5 will not be exceeded
  • Non-cash PPA adjustments (Purchase Price Allocations) of approximately 10 MEUR related to impairment of overlapping technologies will impact the income statement during the first quarter 2017 and
  • approximately 20-30 MEUR related to a revenue recognition adjustment of deferred revenue (haircut) will impact the income statement during 2017
  • Cash transaction costs of approximately 2 MEUR will impact the income statement during the first quarter 2017
  • Excluding haircut, MSC is accretive to Hexagon’s earnings as of closing

Contacts:

Maria Luthström
Investor Relations Manager
Hexagon AB
+46 8 601 26 27
Email Contact

Kristin Christensen
Chief Marketing Officer
Hexagon AB
+1 404 554 0972
Email Contact

This information is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 26 April 2017.

Hexagon is a leading global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications.

Hexagon’s solutions integrate sensors, software, domain knowledge, and customer workflows into intelligent information ecosystems that deliver actionable information. They are used in a broad range of vital industries.

Hexagon (Nasdaq Stockholm: HEXA B) has approximately 17,000 employees in 50 countries and net sales of approximately 3.1bn EUR. Learn more at hexagon.com and follow us @HexagonAB.



Read the complete story ...


Review Article Be the first to review this article
Featured Video
Latest Blog Posts
Dr. Biplab SarkarVectorworks Blog
by Dr. Biplab Sarkar
See How You Can Design Without Limits With Vectorworks
Alex Carrick, Chief Economist at ConstructConnectThe AEC Lens
by Alex Carrick, Chief Economist at ConstructConnect
Two Outstanding News Items from Sept’s U.S. and Canadian Jobs Reports
Jobs
Senior Highway Engineer for RS&H at Jacksonville, Florida
ASIC Architects and Hardware Engineers at D. E. Shaw Research for D. E. Shaw Research at New York, New York
Director, Industrial Machinery Solutions- SISW PLM for Siemens AG at Livonia, Michigan
Product Design Engineer - Softgoods for Apple Inc at Cupertino, California
GIS Business Development Professional for Surveying And Mapping, LLC at , Any State in the USA
Geographic Information System Developer for City of Ithaca at ithaca, New York
Upcoming Events
Built Environment Summit: 1.5°C Climate Actions at London United Kingdom - Oct 27 - 29, 2021
ASEAN Super 8 2021 at Kuala Lumpur. Malaysia - Nov 9 - 11, 2021
Resilient and Responsible Architecture and Urbanism (RRAU) Conference 2021 at Jalan Sunsuria, Bandar Sunsuria, 43900 Sepang, Selangor Darul Ehsan, Malaysia kuala lumpur Malaysia - Nov 16 - 18, 2021
Digital Construction Week at ExCeL London. United Kingdom - Nov 24 - 25, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise