AspenTech acquires Bechtel PIMS.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 8, 1997-- Bechtel's market-leading PIMS PIMS Pacific Institute for the Mathematical Sciences PIMS Penalty Minutes (hockey) PIMS Pakistan Institute of Medical Sciences PIMS Profit Impact of Market Strategy PIMS Project Information Management System unit and affiliated PIMS development group will join 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. 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), and Bechtel Corporation announced today that AspenTech has acquired Bechtel's PIMS (Process Industries Modeling System) business. This unit, headquartered in Houston, provides market-leading software products for planning and scheduling in the process industries, which are based on linear programming technology. Revenues in calendar 1996 were approximately $6 million. Total consideration for the acquisition was $9.85 million in a transaction that consisted of cash paid to Bechtel plus a stock-for-stock exchange to acquire a related software development organization, Basil Joffe Associates, Inc. The acquisition will be accounted for as an asset purchase. "Excluding a one-time charge of approximately $7.75 million for in-process research and development, we do not expect this acquisition to be dilutive on the Company's fiscal year 1997 earnings," stated AspenTech executive vice-president and chief financial officer Mary A. Palermo. The proprietary PIMS software is used by companies in the process industries for economic planning economic planning, control and direction of economic activity by a central public authority. In its modern usage, economic planning tends to be pitted against the laissez-faire philosophy which developed in the 18th cent. and scheduling based on large linear programming models. The PC-based software has by far the leading market share of software in its class and is virtually an industry standard. It is used by more than 170 petroleum refiners and chemical manufacturers for both short-term and strategic applications, including feedstock selection, product mix optimization, logistics and supply chain management, scheduling, process unit optimization, and investment planning. The PIMS technology for scheduling is an algorithm-based approach using multi-period linear programs, which complements the rule-based approach that is implemented in AspenTech's Pro-Sked. PIMS should not be confused with a similar acronym, PIM (1) (Protocol Independent Multicast) A multicast routing protocol endorsed by the IETF. Used in conjunction with an existing unicast routing protocol, it comes in two flavors: Dense Mode (PIM-DM) is used when recipients in the target group are in a concentrated (Process Information Management) that describes software also supplied by AspenTech for on-line retrieval and display of data from a process plant. "This acquisition was very strategic for us to meet our vision of providing complete solutions for the design and operation of process plants," said 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. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AspenTech. "We were missing the technology for linear programming-based planning and scheduling. Now we will be able to integrate the PIMS software with our solutions for on-line optimization and advanced control. We will also be able to integrate it with our off-line design tools. The large PIMS customer base will strengthen our relationship with leading type companies in the industry." "PIMS software, and process studies to identify optimum plant investment, have long been a vital component of our premier engineering service capability for the process industries," stated Jerry Oliver, Vice President of Technology, Bechtel Petroleum and Chemical. "Combining PIMS with AspenTech's expertise at this time will enable a significant and accelerated improvement in its utility, which is to the ultimate benefit of both Bechtel and AspenTech customers. It will also enhance Bechtel's leading process study capability, which remains a strategic part of our EPC (1) (Entertainment PC) See HTPC. (2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). service portfolio. Our long term association with AspenTech will further reinforce this leadership position." The 30 employees of both the former Bechtel PIMS group and Basil Joffe Associates will be retained by AspenTech, and the head office of each will remain at their current locations in Houston. Existing Bechtel PIMS offices in Moscow, Taipei, and London will continue to operate as part of AspenTech. The units will report to Vladimir Mahalec, AspenTech Senior Vice President for Plant Modeling and Optimization. "These units comprise the industry's most effective team for production planning Production planning The function of a manufacturing enterprise responsible for the efficient planning, scheduling, and coordination of all production activities. ," said Mahalec. "They are well-known in the refining industry and bring us a welcome set of experience, software, and services. With this addition, AspenTech is able to deliver production planning integrated with on-line closed loop optimization In compiler theory, loop transformations play an important role in improving cache performance and effective use of parallel processing capabilities. Most execution time of a scientific program is spent on loops. . The linear programming PIMS solutions for planning, nicely complement our nonlinear programming Nonlinear programming The area of applied mathematics and operations research concerned with finding the largest or smallest value of a function subject to constraints or restrictions on the variables of the function. solutions delivered as RT-OPT software, containing DMO DMO Debt Management Office (Bank of England) DMO Destination Marketing Organization DMO Defence Materiel Organisation (Australia) DMO Dental Maintenance Organization DMO Distributed Mission Operations , world leading large scale optimization engine." About AspenTech Aspen Technology, Inc. is a leading supplier of software and services for the analysis, design and automation of process manufacturing The manufacturing industry that uses process control systems. See process control. 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 employs more than 1,100 and is headquartered in Cambridge, Massachusetts, with offices in 16 countries worldwide. AspenTech and the AspenTech logo are registered trademarks of Aspen Technology, Inc. All other marks are trademarks of their respective owners. About Bechtel Corporation Based in San Francisco California, Bechtel Corporation is a leading provider of global engineering, procurement, and construction (EPC) services to a wide variety of industries including petroleum, chemicals, power, mining and metals, pipelines, surface transportation, aviation, space, telecommunications, water management, environmental and pollution control, hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. cleanup, and industrial and commercial construction. -0- For additional information or to arrange an interview, please call Rick McKenna at Harpell/Martins PR at (508)371-1510 X24 or via e-mail at rmckenna@harpell.com. CONTACT: Aspen Technology, Inc. Mary Palermo, CFO See Chief Financial Officer. 10 Canal Park Cambridge, MA 02141 617/577-0100 mary_palermo@aspentech.com or Bechtel Corporation Jerry Oliver Vice President of Technology 713/235-5959 |
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