August 8, 2012 / 11:26 AM / in 5 years

UPDATE 1-Parametric boosts web offerings with Servigistics buy

* Raises full-year adj earnings forecast by 2 cents to 5 cents per share

* Parametric expects to draw on its credit facility to fund deal

* Sees deal to be completed in Sept. 2012

Aug 8 (Reuters) - Product-design software maker Parametric Technology Corp 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, Hewlett-Packard Co and Lockheed Martin.

Parametric expects the deal to be completed in September 2012.

The company’s shares closed at $22.41 on Tuesday on the Nasdaq.

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