Siemens acquires innotec

Aug. 22, 2008

Siemens has expanded its portfolio of industrial software with an agreement to acquire
innotec GmbH of Schwelm, Germany, an international vendor of digital engineering
software and services for the process industry. This acquisition will increase the global
leadership of Industry Automation, a division of the Siemens Industry Sector, in the market for industrial software, making Industry Automation the first industrial equipment provider able to offer all sectors of the manufacturing and process industries system-wide solutions for integrating the entire production sequence and production life cycle.

The purchase price of innotec was not disclosed, and the transaction is subject to the agreement of the authorities. In 2007, Industry Automation already had acquired U.S.-based UGS, an industrial software supplier primarily active in the discrete manufacturing industry.

With around 200 employees, innotec is one of the leading digital engineering software vendors especially for plants in the process industry. As a result of the acquisition, innotec will become a subsidiary of Siemens AG, and for organizational purposes it will be assigned to the Industrial Automation Systems Business Unit.

"innotec is an outstanding technological supplement to our portfolio. It will make us the first vendor in the world that can offer the process industry an integrated software solution, from the planning stage of a production plant, through operation, right
up to modernization,” said CEO Ralf-Michael Franke. 

According to Franke, the innotec software complements Siemens' automation engineering products and services, such as its Simatic PCS 7 process control system and wide range of process instrumentation. Additionally, the sales expertise of the innotec employees, along with their long-established and close customer relationships with leading companies in the process industry, form a suitable supplement to the corresponding regional sales units of Siemens.