ITC Infotech pays $33 million to PTC under deal to partially acquire American company's PLM business

(Representative image: Reuters)

ITC Infotech on Thursday said it has paid an amount of USD 33 million (around Rs 256 crore) to PTC as part of an agreement to acquire a substantial portion of the American company’s product lifecycle management implementation services.

As per an agreement announced on April 22, ITC Infotech will acquire a substantial portion of PTC’s product lifecycle management (PLM) consulting and professional services business.

It also created a new business unit, DxP Services, bringing together PLM professionals from both companies, said a statement by ITC Infotech.

"The overall commitments of ITC Infotech under the agreement are estimated at around USD 115 million of which USD 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 5 years in accordance with the terms of the agreement,” said ITC Infotech.

The new business unit, DxP Services is being led by Patrick Bionducci who previously led PTC’s global services business, it added.

"As a trusted and preferred partner, ITC Infotech will collaborate with PTC to develop joint offerings to accelerate customer digital transformation initiatives,” it said.

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.

"To ensure consistency and accuracy of these SaaS conversion projects, PTC and ITC Infotech are bringing together professionals from both companies into a unified global practice which will create offerings, including the tooling and methodologies required, and execute programs to accelerate the adoption of PTC’s next generation PLM solutions,” it said.

ITC Infotech has also deepened its presence in Austria, Brazil, Canada, Denmark, France, Germany, Italy, the Netherlands, Poland, Romania, Sweden, Switzerland, the UK, the US with this transaction, and envisions becoming one of the leading SaaS (software as a service) systems integrators globally.