PTC Inc ( PTC Quick Quote PTC - Free Report) and India-based ITC Infotech recently announced that the two companies closed the transaction Â¿Â¿Â¿contemplatedÂ¿Â¿Â¿ between them under the Strategic Partner Agreement, which was inked in April 2022.
As a part of the strategic alliance, the two companies will be working closely to develop joint solutions that can speed up customer digital transformation endeavors and boost the uptake of Windchill product lifecycle management (PLM) software as a service (SaaS) solution.
As part of the deal, a significant part of PTC's PLM consulting and professional services business has been taken over by ITC Infotech. Per the agreement, ITC InfotechÂ¿Â¿Â¿s total commitments are worth around $115 million. This includes $33 million cash received by PTC at the closing of the transaction. The remaining constitutes a mix of committed and contingent items to be delivered over the next five years per the terms of the agreement, added PTC.
Following the takeover, ITC Infotech will be setting up a new business division called DxP Services, led byÂ¿Â¿ Patrick Bionducci. Bionducci earlier led PTCÂ¿Â¿Â¿s global services business.Â¿Â¿
Nearly 160 of PTCÂ¿Â¿Â¿s PLM consultant staff will join DxP Services unit alongside ITC InfotechÂ¿Â¿Â¿s PLM professionals. DxP Services unit will be focusing on migrating PTCÂ¿Â¿Â¿s customer systems to the cloud as part of its multi-year roadmap, stated PTC.
The takeover of PTCÂ¿Â¿Â¿s PLM consulting and professional services business will expand ITC InfotechÂ¿Â¿Â¿s presence in Italy, Austria, Brazil, Canada, Denmark, France, Germany, the Netherlands, Poland, Romania, Sweden, Switzerland, the U.K. and the United States and enable it to become a leading global SaaS systemsÂ¿Â¿Â¿ integrator.
Boston, MA-based PTC Inc. provides software solutions and services globally that aid manufacturing companies in designing, operating, and managing products. The companyÂ¿Â¿Â¿s top-line performance is driven by robust demand for products (digital transformation and SaaS) across all segments and regions.
The company is also working toward accelerating the SaaS transition by increasing the capacity of its Atlas platform and improving its SaaS capabilities. PTC is witnessing robust adoption of Creo CAD and Windchill solutions. Strategic acquisitions have played a pivotal part in developing the companyÂ¿Â¿Â¿s business in the last few years.
PTC currently sports a Zacks Rank #1 (Strong Buy). Shares have lost 10.6% against the
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