US PTC announced its acquisition of Israeli Enigma today for an estimated $10M
US based PTC, Parametric Technology Corporation (Nasdaq: PMTC), announced Tuesday its acquisition of Enigma Israel, a developer of software for the management and maintenance of large and complex equipment often found in industrial machinery.
While the companies did not disclose any figures, the deal’s estimated value sits at around $10 million, an amount lower than the company’s current total investment. As part of the transaction, PTC plans to integrate the majority of Enigma’s operations into its development center located in Herzliya, Israel.
From the production line to the user
Enigma’s software handles the maintenance of databases containing large stores of technical components including heavy industrial equipment, aircraft spare parts and components, mechanical equipment and the like. The software is designed to help manage the maintenance of a product throughout the course of its lifecycle, from the moment it comes off the assembly line all the way through to its installation. Enigma is used in companies throughout the world with client’s including Ford and FedEx to name a few.
PTC is an American company which develops software for managing the design, development and production of engineering products including PLM (Product Lifecycle Management), CAM (Computer Aided Manufacturing), CAD (Computer Aided Design), ALM (Application Lifecycle Management) and SLM (Service Lifecycle Management).
PTC currently employs over 6,000 people around the world, with clients including known manufacturing and technology companies such as Motorola, Toyota, Boeing, Audi, Samsung, Dell, Toshiba and others.
PTC products allow for three-dimensional workups of a product’s lifecycle from conception all the way through to production and client-side support. Using the software customers can design products digitally, fabricate a three-dimensional model to examine how the various components fit together and see where changes and adjustments need to be made before reaching the production stage.
PTC’s development center in Israel has been operating since 1991 and has about 250 employees spread out between their two local branches, one in Herzliya and the other in Haifa. Currently the company is in the process of expanding its Herzliya development center. Along with the arrival of the new Enigma employees, dozens of hires are expected to fill out the company’s expanding operations.
Ziv Belfer, Senior VP of Engineering and R&D at PTC Israel, explained that the addition of Enigma’s technology will help expand the ability of PTC to provide its customers a complete solution for managing their products’ lifecycles. Belfer added that the reason this is an attractive acquisition for PTC is due to the adjustment of the company’s technology strategy, along with the knowledge and experience they will gain in the form of Enigma’s employees – not to mention Enigma’s existing customer base.
Enigma was established in 1992 by Jonathan Yaron, Ronnen Armon and Amit Solomon. By 2000, the company managed to raise approximately $50M in funding. Enigma’s corporate offices are located in Boston while its central development center is in Herzliya. The company now has several additional offices at various locations around the globe.