PTC to Acquire Arena Solutions

PTC has signed a definitive agreement to acquire Arena Solutions, the industry’s leading SaaS PLM platform provider.

PTC to Acquire SaaS PLM Leader Arena Solutions

The Arena Solutions acquisition will further PTC’s strategy to be the leader in the rapidly-growing market for SaaS-based product development software, enabling the company to deliver a complete CAD and PLM SaaS solution.

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What Will the Arena Solutions Acquisition Mean for PTC and the Market? Frequently Asked Questions

With the acquisition of Arena Solutions, PTC will deliver on the company’s SaaS strategy, expand the company’s market opportunity, accelerate ARR growth, and complement the existing technology portfolio.

  • What happened?

    On December 14, PTC announced that it intends to acquire Arena Solutions, the industry's leading “software as a service” (SaaS) product lifecycle management (PLM) platform provider. Pending regulatory approval and satisfaction of other closing conditions, the transaction is expected to be completed in January or February 2021.

  • Who is Arena Solutions?

    Founded in 2000, Arena Solutions has approximately 160 employees worldwide. With headquarters in Foster City, California, the company profitably serves more than 1,200 customers across the electronics, high tech, and medical device industries. Core to Arena's value proposition is its ability to manage highly complex bills of materials (BOMs) and compliance with quality standards and regulatory requirements. For many companies, especially in the electronics, high tech, and medical device industries, BOM and quality management can be the most critical part of the product realization process. Seamlessly delivered via the cloud, Arena's customers can track, manage, and share product information from engineering to manufacturing, and across an extended supply chain.

  • Why did PTC decide to acquire Arena Solutions?

    • Deliver on PTC’s SaaS Strategy: PTC has set a goal to be the SaaS leader in industrial software. The first major step toward that goal was the acquisition of Onshape. The acquisition of Arena Solutions will round out that strategy, enabling PTC to deliver a complete CAD + PLM SaaS solution.
    • Expand PTC’s Market Opportunity: Arena will broadly extend PTC’s presence in the attractive mid-market, where SaaS solutions have become the standard, particularly with innovators in the electronics, high tech, and medical device industries.
    • Drive ARR Growth: Arena is expected to end calendar year 2020 with approximately $50 million in annualized recurring revenue, reflecting double-digit growth throughout 2019.
    • Complement Existing Portfolio: Together, Arena and Onshape will deliver a complete SaaS CAD + PLM solution that perfectly complements our existing Creo and Windchill businesses.

  • How much will PTC pay for Arena Solutions?

    $715M, net of cash acquired.

  • What are the benefits of the Arena Solutions SaaS PLM platform?

    For customers, the benefits of SaaS are becoming increasingly important—faster time to value, faster innovation, improved collaboration, and lower total cost of ownership given the elimination of IT infrastructure to administer and maintain. Seamlessly delivered via the cloud, Arena Solutions' customers can track, manage, and share product information from engineering to manufacturing, and across an extended supply chain.

  • How will Arena Solutions be integrated with PTC?

    We will provide those details once the transaction has closed, which we expect to happen in January or February 2021.

  • What will this mean for your announced plans to refactor Creo and Windchill as SaaS?

    PTC remains committed to bringing the benefits of SaaS to its existing customers. We expect to bring existing Creo CAD software and Windchill PLM software customers to the SaaS world in a fully compatible way leveraging our Atlas™ SaaS Platform.

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