PTC (Nasdaq: PMTC) today announced it has signed a definitive agreement to acquire Servigistics, Inc., developer of an innovative suite of service lifecycle management (SLM) software solutions, for approximately $220 million in cash. Pending regulatory approval and satisfaction of other customary conditions, the transaction is expected to be completed in September 2012.
The acquisition will greatly enhance PTC’s existing portfolio of SLM solutions which, today, includes robust capabilities in the areas of warranty and contract management, service parts definition, and technical information – including mobile delivery. Servigistics is recognized as a technology leader in complementary areas such as service parts planning, management and pricing, field service management, returns and repair management, and service knowledge management. In combination, the solutions will dramatically accelerate PTC’s ability to help discrete manufacturers transform their service strategies and operations into a true source of sustainable competitive edge – what PTC describes as “service advantage.”
“Over the past few years, Servigistics has earned a reputation for innovation in helping companies maximize their global service businesses through increased profitability, cash flow, and customer loyalty,” said PTC president and CEO Jim Heppelmann. “Their customers are at the leading edge of a global trend to take service from a cost center to a profit center, and SLM technology has been a critical driver. This acquisition should make clear just how serious PTC is about helping its customers achieve lasting service advantage.”
For leading manufacturers, getting their service strategy right presents a multi-billion dollar, high-margin revenue opportunity to differentiate themselves in the market from their traditional product-oriented competitors. As an enabling technology, SLM helps manufacturers and their service network partners optimize the customer experience by ensuring service is systemically planned, delivered, and analyzed to continually improve performance and maximize customer value. Yet, few manufacturers have either a coordinated strategy or the integrated technology suite needed to capture this new market opportunity – with many manufacturers realizing as little as 25% of the total service value in their products’ service lifecycle.