Saturday, May 29, 2004

Electronic Data Systems finishes Clermont spin-off

By Mike Boyer
The Cincinnati Enquirer

Electronic Data Systems Inc. has completed the spin-off of its product engineering software business, employing about 600 in Clermont County.

But the new privately held company, renamed UGS Corp., will keep its corporate office, employing about 80, in the Dallas area.

When the spin-off to a private investor group was announced earlier this year, local development officials hoped to lure the corporate headquarters to the Park50 TechneCenter, near Milford, the company's largest operation.

John Clendening, spokesman for UGS, formerly known as UGS PLM Solutions, said the new company, which employs 4,700 worldwide, looked at a number of locations but decided to remain in Dallas, also the home of EDS.

Tony Affuso, UGS president and CEO, was also named chairman of the board.

The investment group including Bain Capital, Silver Lake Partners and Warburg Pincus paid $2.05 billion in cash for UGS, the largest private equity investment in a technology company.

UGS provides software and services that enables large companies to develop new products, deliver them and service them in collaboration with suppliers.

UGS is one of the largest suppliers of product lifecycle management software with more than 3 million licensed seats and 42,000 clients worldwide.

In the year ending March 31, UGS reported net income of $106 million on revenues of $927 million

EDS created the company in 2001 by acquiring the former Structural Dynamics Research Corp., based at the Park50 TechneCenter, and merging it with its Unigraphics Solutions unit.

EDS announced plans last year to divest the business to focus on its IT and outsourcing operations.


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