PTC to Acquire SaaS PLM Platform Provider Arena Solutions

PTC announced that it has signed a definitive agreement to acquire SaaS PLM Platform Provider Arena Solutions, Inc., a leading “software as a service” (SaaS) product lifecycle management (PLM) platform provider.  The acquisition will help to further PTC’s strategy to be a leader in the rapidly growing market for SaaS-based product development software, enabling the company to deliver a comprehensive CAD + PLM SaaS solution.  Under the terms of the agreement, PTC will acquire Arena Solutions for $715 million in cash.  Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to be completed in PTC’s fiscal Q2 2021.

With headquarters in Foster City, California, Arena Solutions serves over 1,200 customers across the electronics, high-tech, and medical-device industries.  In addition, Arena will extend PTC’s presence in the mid-market, where SaaS solutions are becoming a standard.

The Arena Solutions product realization platform helps to unify PLM, quality management, and requirements management, allowing participants throughout the product design and manufacturing process, as well as across an extended supply chain, to work together in a more secure, high availability cloud environment.

Financial Impact

The transaction is expected to be neutral to PTC’s FY’21 cash flow from operations target of $365 million and free cash flow target of $340 million (which reflects the deduction of approximately $25 million of capital expenditures from cash flow from operations) and accretive to FY’22 and beyond.  The transaction will be funded with cash on-hand and amounts borrowed under PTC’s existing credit facility.