Struggling UK-based virtual reality software developer Division Group Plc has accepted a 28m pound takeover bid from Parametric Technology (UK) Ltd. The wholly-owned subsidiary of Waltham, Massachusetts-based Parametric Technology Corp, will offer 40 pence per share, or a stock alternative. The offer is 25% above Division’s price on January 11, when the bid approach was announced. Division has also announced disappointing 1998 results which reflected its struggle as an independent company. Revenues decreased by 11% to just over 6m pounds, and it reported a net loss of 3.84m pounds up on the previous year’s 1.7m loss. Parametric hopes to complete the acquisition in two to three months. Its goal is to integrate Division’s product visualization software into its Windchill product lifecycle management system. On Wednesday Parametric announced first quarter revenues of $250.1m, down from $258.9m in the same quarter 1998, with net income, after acquisition charges, of $30.0m, or $0.11 per share, compared with $42.1m, or $0.15 per share. Parametric warns that the acquisition of Division will not add to its revenue this financial year, but expects the transaction to reduce its consolidated earnings for 1999 by 3 cents.
