ITC Infotech and PTC announced the closing of the transaction contemplated under the strategic partner agreement announced in April. The transaction is designed to accelerate customer digital transformation initiatives and the adoption of PTC’s industry-leading Windchill product lifecycle management (PLM) software as a service (SaaS).
Under the agreement, ITC Infotech has acquired a substantial portion of PTC’s PLM consulting and professional services business, including approximately 160 PLM consultants and services experts, and created a new business unit, called DxP Services, bringing together PLM professionals from both companies. This new business unit within ITC Infotech is being led by Patrick Bionducci who previously led PTC’s global services business, said a press statement issued by ITC Infotech.
The overall commitments of ITC Infotech under the agreement are estimated at around $115 million, of which $33 million in cash was received by PTC at the closing of the transaction, with the remainder consisting of a mix of committed and contingent items deliverable over a period of five years in accordance with the terms of the agreement.
SaaS adoption
Across all aspects of business, digital transformation and SaaS adoption have gone mainstream, with more than half of all commercial software expected to be sold as SaaS this year. In the manufacturing industry, the SaaS adoption curve is accelerating, driven in part by the Covid pandemic. To meet this fast-emerging market need, PTC is investing heavily to bring its entire product portfolio to the cloud via its PTC Atlas SaaS Platform.
Thousands of PTC customer systems are expected to be converted to the cloud as part of the multi-year roadmap for the new business unit. DxP Services is enabled by rich domain and technical knowledge of a team of experts committed to accelerating customer digital transformation journeys.
ITC Infotech has also deepened its presence in Austria, Brazil, Canada, Denmark, France, Germany, Italy, the Netherlands, Poland, Romania, Sweden, Switzerland, the UK, and the US with this transaction, and envisions becoming one of the leading SaaS systems integrators globally.
Published on
June 02, 2022
