This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Autodesk to Buy Moldflow

SAN FRANCISCO -- Autodesk (ADSK - Get Report) will buy Framingham, Mass.-based Moldflow (MFLO), 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).

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
PMTC $0.00 0.00%
ADSK $50.96 -0.18%
AAPL $123.73 0.78%
FB $95.35 1.30%
GOOG $630.30 0.48%


Chart of I:DJI
DOW 17,642.09 +201.50 1.16%
S&P 500 2,092.21 +24.57 1.19%
NASDAQ 5,089.0990 +49.3230 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs