Aspen Technology to Acquire On-Line Process Automation Leaders; Company strengthens leadership position in Computer-aided chemical engineering for process manufacturing.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 9, 1996--Aspen Technology, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AZPN), a leading supplier of computer-aided chemical engineering (CACHE) software for the process manufacturing The manufacturing industry that uses process control systems. See process control. industries, today announced that it has acquired Dynamic Matrix Control Corporation (DMCC DMCC Dubai Multi Commodities Centre DMCC Data Management and Coordinating Center DMCC Data Management Coordinating Committee DMCC Diploma in the Medical Care of Catastrophes DMCC Division Movement Control Center DMCC Depot Maintenance Control Center ) and signed a definitive agreement to acquire Setpoint, Inc., both leading suppliers of on-line automation and information management software and services to the process manufacturing industries. "It has been part of AspenTech's strategy to expand our business from applications in research and development and engineering, which are primarily off-line, to applications in production that are mainly on-line. Customers want to be able to compare the theoretical benchmarks of a manufacturing process, as predicted by an off-line model, to actual results achieved in the plant, measured by on-line solutions, in order to optimize performance in real-time. The ability to offer integrated technology that uses the same consistent models across the life-cycle of a process is very attractive to our customers," explained Larry Evans
Larry Melvyn Evans (born March 23, 1932) is an American chess grandmaster and journalist. He has won the U.S. Chess Championship four times. , AspenTech chairman and chief executive officer. "These acquisitions establish AspenTech as the market leader in three key on-line market segments: process information management, advanced control and optimization. They complement our existing franchise in off-line modeling for engineering and research and development, where we already are the market leader. "DMCC and Setpoint are noted for their project implementation capabilities and technology leadership," continued Evans. "Combining the project capabilities and technology bases of DMCC and Setpoint with AspenTech's process modeling software will accelerate development of the rapidly growing on-line market and significantly broaden the company's available market." AspenTech expects DMCC to post revenues for calendar 1995 of approximately $17 million. DMCC was privately held with 110 employees. The acquisition will be accounted for as a purchase transaction, with AspenTech acquiring 81 percent of DMCC for $15.8 million in cash. DMCC and Setpoint are headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the and are leaders in on-line plant automation. DMCC was founded in 1981 by Dr. Charles Cutler Sir Charles Benjamin Cutler, KBE, ED (20 April 1918 - 23 September 2006) was an Australian politician, holding office for 28 years as an elected member of the New South Wales Legislative Assembly, who served as NSW Deputy Premier for 10 years and Country Party leader for 16 years. , a pioneer in the development of algorithms for multi-variable control and former head of process control and optimization activities at Shell Oil and Shell Development. Cutler commented, "AspenTech was our first choice as a partner because our companies have strong traditions of technical excellence; we have a lot of mutual respect. The combination represents the first time our customers have the opportunity to integrate process design and plant automation." Dr. Cutler will remain a senior advisor In some countries, a Senior Advisor is an appointed position by the Head of State to advise on the highest levels of national and government policy. Sometimes a junior position to this is called a National Policy Advisor. to DMCC. AspenTech has worked with Setpoint in a strategic alliance to deliver process optimization Process optimization is the practice of making changes or adjustments to a process, to get results. Optimization is the use of specific techniques to determine the most cost effective and efficient solution to a problem or design for a process. solutions since 1993. Setpoint, a subsidiary of Alcatel Alstrom (France), was founded in 1977 as one of the first independent firms to provide advanced automation systems to the process industries. Doug White
Doug White of Manchester, Ohio, is an American politician of the Republican party who served as president of the Ohio Senate for two years, from 2003 to , president of Setpoint, noted, "This merger will allow us to deliver great solutions to customers today and to develop powerful technology for the future." AspenTech expects to purchase all of the stock of Setpoint for no more than $26.3 million (subject to certain adjustments based on Setpoint's audited net worth as of December 31, 1995). The purchase transaction is expected to close during the first quarter of calendar 1996. Setpoint expects to post revenues for calendar 1995 of approximately $45 million and has 435 employees. The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the acquisition is subject to customary conditions to closing, including the completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. . AspenTech senior vice president and chief financial officer Mary A. Palermo stated, "Based on project backlog at both DMCC and Setpoint, we anticipate that the earnings per share impact of the acquisitions will be non-dilutive for the current fiscal year ending June 30, 1996, excluding a one-time charge of approximately $31.0 million, or $19.5 million net of tax benefit. We expect a positive earnings per share impact from the acquisitions in fiscal year 1997." AspenTech expects to post revenues for calendar 1995 of approximately $65 million and has 410 employees. The company will report earnings for the second quarter of fiscal 1996 on January 23, 1996. Aspen Technology Aspen Technology (NASDAQ: AZPN) provides software and professional services to the manufacturing and process industries which allows companies to model, manage, and control their operations. AspenTech was founded in 1981 by MIT professor Dr. , Inc., is a leading supplier of software and services for the analysis, design and automation of process manufacturing plants in industries such as chemical, petroleum, pharmaceuticals, electric power, pulp and paper and metals. Process manufacturers use AspenTech's solutions to improve the way they design, operate and manage their plants. These solutions enable customers to reduce their raw material, energy and capital expenses, meet environmental and safety regulations, improve product quality and shorten the time required to get new production processes on stream. AspenTech is headquartered in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , with offices in eight countries worldwide. CONTACT: Mary Dean Palermo Senior Vice President Aspen Technology, Inc. Tel: (617) 577-0100 |
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