ITC Infotech pays $33 mn to PTC to partially buy biz services

KOLKATA: ITC Infotech on Thursday said it has paid an amount of $33 million (around Rs 256 crore) to PTC as part of an agreement to acquire a substantial portion of the American company’s product lifecycle management implementation services.

As per an agreement announced on April 22, ITC Infotech will acquire a substantial portion of PTC’s product lifecycle management (PLM) consulting and professional services business. It also created a new business unit, DxP Services, bringing together PLM professionals from both companies, said a statement by ITC Infotech.

“The overall commitments of ITC Infotech under the agreement are estimated at around $115 million of which $33 million in cash was received by PTC at the closing of the transaction, with the remainder consisting of a mix of committed and contingent items deliverable over a period of 5 years in accordance with the terms of the agreement,” said ITC Infotech.

The new business unit, DxP Services is being led by Patrick Bionducci who previously led PTC’s global services business, it added.

Thousands of PTC customer systems are expected to be converted to the cloud as part of the multi-year roadmap for the new business unit.

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