Analysis

Telelogic Strengthens its Position in the Embedded Market through the Acquisition of I-Logix

15th March 2006
ES Admin
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Telelogic AB has announced the acquisition of privately-held I-Logix, a leading provider of modeling tools for the embedded market. Under the terms of the agreement, the consideration of USD 80 million will be paid in cash. I-Logix´s revenue 2005 was USD 26.8 million with 11% in operating margin. I-Logix currently employs 133 people.
Telelogic has communicated its vision for growth over the coming five-year period. This is to be achieved both organically and by extending and complementing our comprehensive product portfolio through selective acquisitions. Today Telelogic has a market leading ALM offering and is one of the global market leaders in the area of systems and software modeling with Telelogic TAU. Telelogic has identified I-Logix as a highly successful, fast growing company with a market leading product that ideally complements Telelogic´s offering in the modeling space as well as many of our other products, especially those with focus on embedded applications.

I-Logix develops and sells solutions for Model-Driven Development (MDD). These solutions allow engineers, operating in either small or large teams, to graphically model the requirements, behavior, and functionality of embedded systems. The design is iteratively analyzed, validated, and tested throughout the development process and production-quality code can be automatically generated at any stage, in a variety of languages. While Telelogic TAU G2 is strong in the general modeling space, I-Logix has focused on the embedded space where it has created a very strong market position.

"We are acquiring the fastest growing supplier of modeling tools for the embedded market," said Anders Lidbeck, President and CEO of Telelogic. "I-Logix has become a tough competitor the past years with a strong modeling offer focused on embedded systems and software development. Their products have an edge in embedded development and have managed to secure a top position in that market. By combining our two companies, Telelogic will be able to even better address our customers´ needs for developing advanced systems and software, for both the enterprise and projects. We will undoubtedly be number one in this space."

"Telelogic and I-Logix both have a long tradition of focusing very carefully on user needs. We also share a common technology view and a commitment toward standards ranging from UML to SysML and DoDAF" says Gene Robinson, CEO of I-Logix. "I-Logix´s products strongly complement Telelogic´s and together our combined solutions and resources will benefit all of our customers. We chose to become a part of Telelogic family because we believe in their vision to assemble the broadest array of "dream-team" products and solutions for our combined market. We have had excellent growth with increasing profitability and we are now at a point where the business vision can best be realized and customer needs most effectively addressed by merging with a larger complementary organization with greater financial resources and extensive global reach. Being a part of Telelogic will create significantly better prospects for our users and our employees."

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