View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 5, 1997updated 03 Sep 2016 12:50pm

PARAMETRIC RESCUES COMPUTERVISION FROM MOUNTAIN OF DEBT

By CBR Staff Writer

Parametric Technology Corp, the industrial and mechanical design software house, has stepped in to rescue the failing Computervision Corp which was slowly drowning under a mountain of corporate debt. The take-over deal, which is an all share offer and will be accounted for as a pooling of interests, values the distressed design automation software house at around $260m. Under the terms of the agreement, each of Computervision’s shares will be exchanged for 0.0866 shares in Parametric technology. Computervision represents the classic example of a leveraged buy out too far. The company was purchased by Prime Computer Corp in an initially hostile bid in 1988. It was then rescued from a further aggressive bid by J H Whitney in 1989, by which time the debt levels were building. And then in 1992 the combined entity reverted to the Computervision name following an IPO. The crux of this latest deal is that Parametric will be able to get its hands on Computervision’s big name client base. A client base which Computervision found itself increasingly unable to exploit as its financial distress deepened. Customers simply weren’t willing to commit to a long term partnership on the basis of such flaky financials. The deal also has an added sweetness for Parametric CEO Steven Walske, who was originally a Prime Computer Corp man who left the company over alleged differences of opinion. The companies are also linked through Parametric’s founder, Samuel Geisberg, who originally headed up Computervision’s development wing. The transaction, subject to approval, should close in January 1998.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU