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Autodesk to Buy Moldflow

The deal offers shareholders a 12% premium.

SAN FRANCISCO -- Autodesk (ADSK) - Get Autodesk, Inc. 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.

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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.

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