PTC Acquires NC Graphics

Frequently Asked Questions

On May 2, 2007, PTC acquired privately held NC Graphics. NC Graphics specializes in the development and sales of computer-aided manufacturing solutions for high-speed milling and machining. This acquisition is part of PTC's growth strategy and is expected to significantly benefit PTC customers and prospects by enabling them to further optimize their manufacturing processes. This FAQ is intended to help PTC and NC Graphics customers, partners, media and shareholders understand details about the transaction.

Q: Who is PTC?
A: PTC provides leading product lifecycle management (PLM), content management and dynamic publishing solutions to more than 40,000 companies worldwide. PTC customers include the world's most innovative companies in manufacturing, publishing, services, government and life sciences industries. PTC is included in the S&P Midcap 400 and Russell 2000 indices. PTC is based in Needham, Massachusetts and has over 4,000 employees in more than 20 countries around the world. For more information on PTC, please visit http://www.ptc.com.

Q: Who is NC Graphics?
A: NC Graphics offers leading high-speed machining CAM solutions optimized for tool making and high-speed, precision machining processes. Best known for its market-leading technology distributed under the DEPOCAM name, NC Graphics has revolutionized the process of producing NC machining toolpaths for molds and dies. Machining toolpaths can be created directly from the 3D CAD product design models. NC Graphics solutions are optimized for ease of use and advanced machining routines that include roughing, restmilling and finishing, with full gauge protection for the tool and holder. The solution enables customers to quickly generate reliable NC machining toolpaths and create efficient toolpaths that extend tool life and reduce wear on machines. NC Graphics has over 1,500 customers. It is privately held and has 15 employees in its sole office in Cambridge, England (UK).

Q: What are the financial terms of the transaction?
PTC is not disclosing financial terms at this time as they are not material.

Q: When is the acquisition expected to close?
A: The acquisition is closed.

Q: Why was PTC interested in acquiring NC Graphics?
A: PTC recognizes the important link between product design and manufacturing having delivered a broad set of CAM solutions as part of the Pro/ENGINEER product family. PTC has also been expanding its manufacturing strategy as demonstrated by its acquisition of Polyplan in 2005. With subsequent development investment, The Polyplan technology is scheduled to be released as Windchill MPMLink for manufacturing process management, as part of Windchill 9.0 this summer.

The acquisition of NC Graphics is in direct response to customer demand for more advanced CAM functionality. NC Graphics' solutions complement Pro/ENGINEER design solutions and PTC's general purpose Pro/ENGINEER CAM solutions. The addition of the NC Graphics technology enables PTC to offer a complete, best-in-class design and machining solution for molds, dies, prototypes, and other high-speed, precision machining applications.

Q: Why is mold and die making important to discrete manufacturers?
A: In order to compete domestically and internationally, manufacturers must deliver innovative products faster and with less cost. Mold and die shops and toolmakers are challenged with producing tooling for a large volume of designs from many customers who use a variety of CAD formats. The ability to create molds and dies quickly and accurately is important to the manufacturing process and overall product development process. Additionally, the quality of an end product depends directly on the quality of the tooling. Many products cannot be delivered economically without accurate mold and die designs and efficient machining processes. Companies that optimize their mold and die making processes can deliver more complex products faster and with less cost.

Q: How will the NC Graphics solutions complement the PTC product portfolio?
A: NC Graphics' solutions are a natural extension of the PTC Product Development System (PDS). The combination of PTC and NC Graphics will provide customers with a PDS that will optimize manufacturing processes, specifically in the area of mold and die production and will enable companies to create mold and die assemblies faster and with less cost.

NC Graphics solutions will become an important part of the Pro/ENGINEER product family, providing extensive, best-in-class mold machining capabilities today and establishing a platform for specialized machining capabilities in the future. Combining NC Graphics' mastery of high-speed machining with PTC's existing CAM and tool design portfolio and expertise in 3D associative content will provide a powerful, end-to-end solution for tool production. Because there is little capability overlap, PTC expects the integration of NC Graphics solutions into the portfolio to be relatively straightforward.

NC Graphics solutions can also be used standalone. The products support multiple CAD formats, giving toolmakers the flexibility to machine molds and die from any CAD design. PTC will offer the NC Graphics technology under the new product name, Pro/TOOLMAKER. Both NC Graphics and PTC are committed to openness and support for heterogeneous environments. Moving forward, PTC plans to manage tool paths created using Pro/TOOLMAKER in Windchill, just as it manages Pro/ENGINEER and other CAD data, providing a single source of data that improves secure collaboration among designers, tool makers and manufacturers.

Combining NC Graphics' mastery of high-speed machining with PTC's existing CAM and tool design portfolio and expertise in 3D associative content will provide a powerful, end-to-end solution for tool production. Other vendors offer general solutions for tool design and machining toolpaths, but they do not offer best-in-class products for all tool making process functions. With this acquisition, PTC will offer a complete, best-in-class, optimized solution for creating and managing mold and die assemblies.

Q: Why is this good for both companies' customers?
A: For PTC Customers. Discrete manufacturers in a variety of industries utilize parts created using mold and die processes. Manufacturers rely on the speed and quality of mold and die production to deliver products (and because it is in most case outsourced it is typically on the critical path of the new product introduction cycle). This acquisition allows PTC to offer a complete mold and die making solution including Pro/ENGINEER and Windchill. With Windchill as the single source of information, product and tool designs can be leveraged and reused across the supply chain. The combined PTC and NC Graphics solution will allow PTC customers to:

For NC Graphics Customers. This acquisition allows NC Graphics to offer a complete best-in-class mold and die making solution that can be used stand alone or broadened to include PTC's other products. With Windchill as the single source of information and collaboration platform, product and tool designs can be leveraged and reused across the supply chain. The combined PTC and NC Graphics solution will allow NC Graphics customers to:

Q: How will this transaction impact PTC financially?
A: PTC is not disclosing the financial terms of the deal as they are not material.

Q: What will be the impact on the PTC and NC Graphics organizations?
A: The integration will take place throughout the remainder of fiscal year 2007. Arthur Flutter, founder and managing director of NC Graphics along with key members of the NC Graphics management team will be focused on helping to integrate the businesses in a way that ensures NC Graphics is positioned to continue its track record of delivering industry leading products and customer value. As we integrate the businesses in the coming months, more details will be provided to PTC and NC Graphics customers.

Q: How will this transaction impact PTC's go-to-market strategy?
A: NC Graphics sales and services will continue to provide dedicated support to NC Graphics accounts. Additionally, the NC Graphics' team will support PTC's sales team in servicing existing PTC customers.

Q: What is the integration plan for PTC and NC Graphics products?
A: PTC and NC Graphics are working to determine the best integration plan based on internal strategy and customer requirements.

Q: Who should customers or partners contact if they have questions about the acquisition?
A: PTC and NC Graphics have developed a communications program for both customers and partners. If after reviewing the information posted on both companies' websites and other communications vehicles you have remaining questions, please contact your current PTC or NC Graphics representative.

Q: Who should media or analysts contact if they have questions about the acquisition?
A: Please contact one of the following:

 

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