The London Financial Times announced this afternoon that UGS is about to be acquired by Siemens. http://www.ft.com/cms/s/af89b41c-aba4-11db-a0ed-0000779e2340.html

The deal, which is out of Siemens' automation group,  is likely to be designed to leverage the factory automation tools from UGS, not unlike the relationship that Dassault Systemes has with Schneider Electric.

The price clearly reflects that this deal is strategic to Siemens -- the dollar value of their factory automation group dwarfs that of UGS and if the new relationship can bump that number up even a small percentage, the cost of Siemens purchase will seem quite reasonable.

This is one of those deals where everyone wins.

Siemens gets a strategic asset at a discounted price. UGS' financials have not been a strong as its competitors over the past few quarters, depressing its non-strategic valuation. I had predicted a valuation at the time of...

John Callen and I have had a number of very interesting conversations over the past few years.  John has this habit of actually reading the press releases we put out and then making cogent points on them.

On hearing of the theme for COFES 2007, John wrote:

I remember a couple of COFES' ago commenting on how it was accepted that it was hunky dory that domestic manufacturing move offshore.  And then the very next COFES, everyone was up in arms because REAL Engineering was also getting outsource offshore.  And now, COFES 2007's theme has us fully accepting the Globalization (AKA Outsourcing) of Engineering, by which I would expect, even the REAL Engineering.  Amazing. 

So what do we tell the kids in high school that are making choices for their future careers?  Try the service or entertainment industries???

I want to be clear that the Globalization of Engineering is NOT synonymous with Outsourcing.

Outsourcing is a related issue, but one does not require the other.

Globalization...

Audio recordings from past COFES events are now available to COFES attendees.

Autodesk today announced that they were going to delay submitting their 10-Q quartery report http://go.cadwire.net/?49918,1,1 

I spoke with Carl Bass last week regarding this possibility. Bottom line, this is an accounting issue. There will be no noticable effect to this on Autodesk's bottom line and there are no issues here that have any substance.

In other words, you can ignore it, even if you are a stockholder.

The recent decline in Ansys has set off fears in investors that something must be amiss with the Ansys-Fluent merger. My colleague, Richard Davis, has given me permission to post his explanation as to why that is NOT the case.