Autodesk to Buy Moldflow

Stock quotes in this article: ADSK , MFLO , PMTC  

SAN FRANCISCO -- Autodesk(ADSK Quote) will buy Framingham, Mass.-based Moldflow(MFLO Quote), the companies announced late Thursday.

The San Rafael, Calif.-based supplier of engineering design software said it would pay $22 a share in cash, or about $297 million after receiving Moldflow's cash on hand. The price represents a 12% premium to Moldflow's closing price of $19.61. The deal is expected to close by the end of June.

Moldflow, which develops software for the design of plastic components, had revenue of $55.9 million in 2007. It has 285 employees. The company will expand Autodesk's line of digital prototyping software.

Autodesk is maintaining its outlook for EPS, excluding items, of $2.20 to $2.30 for fiscal 2009, which ends in January, CEO Carl Bass said on a conference call. Analysts expect full-year EPS, less items, of $2.22, according to Thomson Financial.

The acquisition is expected to dilute second-quarter EPS, excluding special items, by 1 to 2 cents. For the quarter, Autodesk expects to write down $11 million in Moldflow deferred revenue and $14 million in research and development, Bass said. Because of the sizeable revenue write-downs, the company is not assuming any revenue contribution from Moldflow for 2009.

Autodesk had 2007 revenue of $1.6 billion and $918 million in cash at the end of the fiscal year. The company may draw upon a line of credit to complete the transaction, Bass said. The computer-aided design software company raised its guidance Apr. 24 for the first quarter ended Wednesday to a range of $590 million to $595 million.

Among engineering software stocks, Autodesk may be compared with Parametric Technology(PMTC Quote).

  • Loading Comments...
  •  

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • linkedin

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,398.50 1,102.76 2,194.49 34.85
Oil *
71.66
UP
61.45
UP
6.82
UP
10.76
UP
0.62
10 Yr
3.48%
SPDR Gold
110.46
+0.59%
+0.62%
+0.49%
+1.81%
Data delayed 20 minutes

Brokerage Partners

TheStreet Premium Services

All Services