Rockwell Automation and PTC reach a strategic part

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Rockwell Automation and PTC have reached a strategic partnership

recently, PTC company (nasdaq:ptc) and Rockwell Automation Company (nyse:rok) announced that the two sides have signed a final strategic cooperation agreement. This cooperation aims to promote the accelerated development of both sides and become a reliable partner for global customers, so as to help customers complete the digital transformation of physical operations. As part of the cooperation, Rockwell Automation will make an equity investment of US $1billion in PTC. Since the completion of the equity transaction, Blake Moret, chairman and CEO of Rockwell Automation, will officially join the PTC board of directors

this cooperation will make full use of the resources, technologies, industry expertise and market position advantages of both sides to carry out cross organizational technical cooperation and jointly expand the global market. In particular, the two sides agreed to coordinate each other's smart factory technology, integrate PTC's widely acclaimed thingworx IOT, kepware industrial interconnection platform and vuforia augmented reality (AR) platform with Rockwell Automation's top factorytalk MES, factorytalk analytics and industrial automation platform, and create unparalleled integrated information solutions to help customers improve productivity and plant efficiency and reduce operational risks, Improve system interoperability

this strategic alliance will take advantage of PTC's leading position in the field of IOT and augmented reality and Rockwell Automation's leading edge in the field of industrial automation and information, integrate the advantageous resources of both sides, and provide the industry with a set of extremely comprehensive top technologies. As the world's top enterprises, both parties will rely on in-depth understanding of customer business to provide customers with comprehensive innovative integrated solutions to fully benefit their customers. Jim heppelmann, President and CEO of PTC, said that Rockwell Automation has industry-leading industrial control and software technology, strong brand image and deep expertise in the field. In addition, it has drainage and exhaust equipment and real estate knowledge, In addition, PTC's technologies are also highly praised. The cooperation between the two sides will help industrial enterprises make full use of the advantages of industrial IOT. I am very excited about the establishment of this partnership, which will create opportunities for our future success

Blake Moret, chairman and CEO of Rockwell Automation, said: we believe that this strategic partnership will give full play to the long-standing innovative advantages of both sides, further expand the value of Internet enterprises, deepen customer relations, and accelerate the business growth of both sides. The integration of it and OT has naturally laid the foundation for coordination and coherence between the two sides. We will work together to provide enterprises in the industrial field with extremely comprehensive and flexible IOT solutions. Our equity investment in PTC fully shows our confidence in the cooperative relationship between the two sides. At the same time, we also believe that this cooperation will bring great benefits to both sides. With the joint efforts of both sides, the subscription income of the two companies will achieve profitable growth

Rockwell Automation's solution business unit will become the preferred delivery and implementation provider, and the two sides will jointly form a strong partner ecosystem to provide strong support. The two sides will form complementary advantages in cross regional, cross terminal market and cross industry applications

terms of the agreement

according to the terms of the agreement on equity investment, Rockwell Automation will spend US $1billion to acquire 10582010 newly issued shares of PTC at the price of US $94.50 per share. Based on the issued shares issued by PTC to Rockwell Automation for reference, this is equivalent to that Rockwell Automation owns about 8.4% of the ownership interest of PTC. The price per share is equivalent to an 8.6% premium on the closing price of PTC shares on June 8, 2018 (the last trading day before the announcement today). It is difficult to develop the corresponding supporting equipment with the strength of a tensile testing machine enterprise alone. Rockwell Automation will invest in a combination of cash and commercial paper loans. Rockwell Automation's ownership interest in PTC will be reflected in the form of marketable securities and calculated at fair value

share repurchases between PTC and Rockwell Automation

PTC plans to use the proceeds of this equity investment to repurchase shares to offset equity dilution

Rockwell Automation announced today that it will raise its share repurchase target for fiscal 2018 to $1.5 billion. This is an increase of $300million over the previous plan to repurchase $1.2 billion of shares in fiscal 2018

transaction time

this investment transaction must meet the regular transaction conditions and require the approval of the regulatory authorities. It is expected to be concluded within 60 days

the advisory team

morgan Stanley Co. LLC and Goodwin Procter LLP serve as the financial adviser and legal adviser of PTC respectively

gold makes personalization self-evident - each product can have its own printing characteristics. An Sachs Co. LLC and Foley Lardner LLP serve as financial consultants and legal consultants of Rockwell Automation respectively

Rockwell Automation teched and PTC liveworx

Rockwell Automation and PTC will demonstrate their complementary technologies and solutions in Rockwell Automation teched activities. Teched is a prestigious training and education activity in the industry, which aims to help enterprises improve machine performance, optimize plant operations and pave the way for the construction of interconnected enterprises. To watch the live broadcast of the event, please visit teched. The live broadcast time is 8:00 a.m. PDT time/11:00 a.m. EDT time

ptc and Rockwell Automation will once again demonstrate their complementary technologies and solutions at liveworx 2018, the world's leading enterprise digital transformation conference, on June 18. To register for the conference, please visit the liveworx registration page

about PTC (nasdaq:ptc)

PTC is committed to helping enterprises around the world reshape the methods and ideas of product design, manufacturing, operation and maintenance and realize transformation under the trend of intelligent interconnection. In 1986, we made a radical change in digital 3D design, and in 1998, we took the lead in launching product lifecycle management based on interconnection. Today, with our leading industrial innovation platform and proven solutions, you can create greater value by relying on the deep integration of the physical world and the digital world. With the help of TC, which has become the top priority in implementing the innovation driven development strategy, the ecosystem of manufacturers, partners and developers will be able to use the broad prospects of IOT and augmented reality technology to continuously promote innovation and create the future

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