Autodesk to buy Britain's Delcam for $277 million

Reuters News
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Posted: Nov 07, 2013 2:35 AM

(Reuters) - Autodesk Inc, a maker of computer-aided design (CAD) software, said it would buy Britain's Delcam Plc for 172.5 million pounds ($277 million), in a deal to expand the U.S. company's software offerings in the manufacturing sector.

Autodesk offered 20.75 pounds per share, a premium of 21 percent to Delcam's Wednesday close on the London Stock Exchange.

Autodesk said it expects to use non-U.S.-based cash for the deal.

"Together Autodesk and Delcam will help further the development and implementation of technology for digital manufacturing," Autodesk Chief Executive Carl Bass said in a statement.

Birmingham-based Delcam is a supplier of advanced CADCAM and industrial measurement solutions for the manufacturing industry.

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Autodesk expects the deal to be dilutive to its non-GAAP earnings in fiscal 2015, while adding to its non-GAAP earnings in fiscal 2016. ($1 = 0.6219 British pounds)

(Reporting by Sakthi Prasad in Bangalore; Editing by Supriya Kurane)