Schnitger Corporation

Super quick: PTC to acquire Arena for SaaS PLM

Deals

Super quick: PTC to acquire Arena for SaaS PLM

Dec 14, 2020 | Hot Topics

Continuing that momentum into all things cloud and SaaS, PTC says it’s signed a definitive agreement to acquire Arena Solutions for $715 million in cash, “enabling the company to deliver a complete CAD + PLM SaaS solution”.

PTC’s CEO Jim Heppelmann said in prepared remarks, “A year ago, PTC entered the SaaS world for product development software with our acquisition of Onshape. That move reflected our strong conviction that our market is nearing a tipping point in its willingness to adopt SaaS technology, following the trend seen in many other software markets. The effects of COVID-19 have dramatically accelerated this inevitable shift, with PTC customer surveys indicating a 25% increase in readiness for SaaS PLM since the pandemic started. We expect the acquisition of Arena will significantly extend our leadership position as we continue to redefine the future of our industry … This acquisition is the logical next step in PTC’s strategy to be the industrial SaaS leader.”

At the end of CY20, Arena Solutions is expected to report ~$50 million in annualized recurring revenue, which makes this deal a revenue multiple of 14.3x.

The deal has the usual closing conditions and regulatory review, so the acquisition is expected to be completed in PTC’s fiscal Q2 2021 (in other words, by March).

Nemetschek adds DEXMA to its Build & Operate portfolio Hexagon adds OxBlue visual AI to AEC offerings
Exit mobile version