Aveva, Leading Engineering Software Provider, Acquires Logitimatic Software With a £17.2 Million Investment

Online, June 10, 2010 (Newswire.com) - [For immediate Release]
(London, 11 June 2010) - Aveva, the engineering software maker, announced it had bought Denmark's Logitimatic Software and assets from its Norwegian owner, ADB Systemer AS for a sum of £17.2 million in its quest to boost its database products. Further to this, the company said that it was keen on additional bolt-on investment deals.

During the announcement, Aveva CEO, Richard Longdon, said that the bolt-on investment deals are aimed at enhancing Aveva Net, a keeper of tabs on components in complex ships and industrial systems, and has grown robustly through the recession. He said that, whereas both companies had renowned leading technologies, they had unfortunately lacked the right sales channels to exploit it, especially in the Asian market. Logitimatic, the purchased company by Aveva at an estimated £12.8 million, makes software that is used for handling the production planning process by industries.

Speaking to Reuters today, Mr. Longdon said that the Logitimatic's software was a natural fit in the sense that after the design phase, it usually is the next step along. He further said that ADP's products were more about integrating the different aspects of the design of a plant, with customers in the oil and gas market.

This new investment acquisition is hoped to bolster Aveva Net's contribution to the bottom line in the intermediate term but would be relatively neutral in its first year. In the deal, the company will be left with £130 million in cash, despite having increased its full-year dividend by 81% in May, which will be used for additional strategic investments deals. He added that the company's shareholders were more than happy for it to hold on to the cash, as long as the company did its investment acquisition plans carefully and wisely.

Mr. Longdon said that this new acquisition would strengthen the company's market position in the plant and marine industries with the company keeping a strong focus on the business as its customers increasingly seek technology solutions to manage both new and brownfield assets. By bringing together highly skilled industry professionals with incomparable industry knowledge, proven products, solution delivery capacity and strong customer relations, this acquisition strengthens the company's market position and will consequently enable it to capitalize on the growing opportunities. Aveva expects to complete the acquisition by 30 June, 2010.

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