Parametric boosts web offerings with Servigistics buy
(Reuters) - Product-design software maker Parametric Technology Corp PMTC.O said it would buy privately held Servigistics Inc for about $220 million in cash, to beef up its web process management offerings and the company raised its full-year earnings forecast.
Parametric raised its 2013 adjusted earnings forecast by a range of 2 cents to 5 cents per share. It had previously forecast adjusted earnings of between $1.70 and $1.80 per share.
Analysts on average were expecting the company to earn $1.74 per share, according to Thomson Reuters I/B/E/S.
Parametric, which makes software used to create 3-D computer models for aircraft engines, cars and mobile phones expects to draw on its credit facility to fund the transaction.
Servigistics, which generated about $80 million in revenue last year, provides software which help companies manage parts and logistics. Its customers include Dell Inc DELL.O, Hewlett-Packard Co (HPQ.N) and Lockheed Martin (LMT.N).
Parametric expects the deal to be completed in September 2012.
The company's shares closed at $22.41 on Tuesday on the Nasdaq.
(Reporting by Chandni Doulatramani in Bangalore; Editing by Supriya Kurane)