June 2, 2022
ITC Infotech and PTC have closed the transaction pursued between the parties under the strategic partner agreement announced in April. The transaction is designed to accelerate customer digital transformation initiatives and the adoption of PTC's 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, joining 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.
As a partner, ITC Infotech will collaborate with PTC to develop joint offerings to accelerate customer digital transformation initiatives, focused on the adoption of PTC's Windchill+ PLM SaaS offering.
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.
DxP Services represents one of the largest organizations of Windchill professional services expertise in the industry. It is enabled by 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 United Kingdom and the United States with this transaction.
Overall commitments of ITC Infotech under the agreement are estimated at around US $115 million, of which US $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.
Sources: Press materials received from the company and additional information gleaned from the company’s website.