Platinum Technology Inc is at it again, acquiring Princeton, New Jersey data modeling software house Logic Works Inc in a stock swap. Logic Works, of Princeton, New Jersey, is a ten year-old data modeling pioneer, and its ERWin entity relationship modeling for Windows tool has kept its market leading position despite a rash of younger competitors. Logic Works shareholders will receive 0.5769 of a Platinum common share for each share held. Based on Platinum’s closing price of $26.56 on March 13, Logic Works is being valued at roughly $174.8m. Platinum, the Oakbrook Terrace, Illinois database and systems management company which bought up eight companies last year, has now made its second purchase of this year. Platinum reckons the Logic Works acquisition will give it the clear lead in enterprise modeling with a comprehensive offering for modeling application components, databases and business processes. Platinum already has its Paradigm Plus object-based analysis and design tools, and was early with its support of the Object Modeling Group’s Unified Modeling Language. It’s also working with Microsoft Corp on the development of the Microsoft Repository technology for team software development. Platinum believes the market for enterprise modeling to be worth about $1.9bn by 2001. It expects the acquisition to be immediately accretive after closing, which is expected in mid-1998. The deal will be accounted for as a pooling of interests. According to chief executive Andrew Filipowski, the company will take a charge in the second quarter which should be something under $5m. Looking ahead, Filipowski insisted his company is firmly committed to its policy of acquisition. He feels that M&A are a prominent part of the current landscape and sees activity only heating up to an outrageous pace, leaving a handful of giants in each industry while everyone else will wither and die. We’ll do whatever’s necessary to make sure we’re one of the survivors, he said. Following the announcement, Platinum shares fell $2.0625 to close at $24.50.
