|For Immediate Release
AspenTech Acquires B-JAC International
Adds Key Heat Exchanger Thermal/Mechanical Software
CAMBRIDGE, MA, October 8, 1996 -- Aspen Technology, Inc. (NASDAQ:AZPN), today announced it has completed the acquisition of B-JAC International, Inc., a leading supplier of detailed heat exchanger modeling software, based in Richmond, Virginia. AspenTech is a leading supplier of computer-aided chemical engineering, on-line automation, and process information management software and services to help process manufacturers operate closer to potential through the entire manufacturing lifecycle. AspenTech Chairman and CEO Lawrence B. Evans said, "The addition of the B-JAC software to our modeling family allows AspenTech to tightly link the B-JAC tools with our powerful ASPEN PLUS® software to provide our customers a common model from design through the specifications with their equipment manufacturers. Since virtually every process plant requires heat exchangers, the B-JAC acquisition allows us to build upon our leadership in process modeling.
The B-JAC acquisition will be accounted for as a stock-for-stock pooling transaction, with AspenTech acquiring all of B-JACís stock for $3.4 million. "We anticipate that the earnings per share impact of the acquisition will be non-dilutive for the current fiscal year ending June 30, 1997," stated AspenTech executive vice president and chief financial officer Mary A. Palermo.
In a separate release AspenTech also announced today the acquisition of Cambridge Control's process control division, a consulting group specializing in process manufacturing control application for the refining, petrochemical and pulp and paper industries.
Founded in 1970, B-JAC is known for its fast, reliable and easy-to-use software that could evaluate heat exchange equipment in detail. B-JACís software conforms with industry standards, and is the leading supplier of this software in the Microsoft Windows environment. Prior to the acquisition B-JAC was privately held with more than 700 companies using their products worldwide. Sales in the fiscal year ended April 30, 1996 were $2.5 million.
AspenTech, ASPEN PLUS® and the AspenTech logo are USPTO registered trademarks of Aspen Technology, Inc. B-JAC is a trademark of Aspen Technology, Inc. All other marks are trademarks of their respective owners.
Questions and Answers on AspenTech's Acquisition of B-JACTM
1. Why is AspenTech acquiring B-JAC?
Aspen Technology, Inc. acquired B-JAC International, Inc. as part of the company's overall strategy to provide a complete and integrated suite of process modeling technology to companies in the process industries. AspenTech's mission is to enable our customers to dramatically increase profitability by fundamentally improving the way they design and operate their manufacturing processes. The B-JAC acquisition further strengthens AspenTech's product suite and allows AspenTech to enter the market for the detailed modeling and design of heat exchangers which are prevalent in all manufacturing plants.
2. Who is B-JAC?
B-JAC International, Inc., based in Midlothian (near Richmond), Virginia, is a major supplier of computer-aided heat exchanger equipment design and modeling software. Founded in 1970 by B-JAC's president John W. Noe, B-JAC's products are used for detailed thermal and mechanical heat exchanger design. Today, over 700 companies worldwide use B-JAC's tools. B-JAC is recognized in the process industries for its technology leadership, and distinguishes itself as the only major supplier with Windows-based products and mechanical design tools.
3. What are the benefits of this acquisition to the process industries?
Heat exchangers are by far the most common equipment in the process industries. The integration of B-JAC's products into AspenTech's technology suite will allow customers to perform detailed heat exchanger modeling in the context of an overall process model. The benefits are lower capital costs, improved plant productivity, and reduced engineering time. These results come from faster, more accurate, and more reliable modeling of heat exchangers. Also, customers will value the speed and ease-of-use resulting in their work procedure from having a seamless integration between the various modeling activities in ASPEN PLUS and the B-JAC products. The combination of AspenTech and B-JAC allows B-JAC's technology to be brought to a much larger market by leveraging upon AspenTech's worldwide sales, technical support, and product development organizations.
4. What are the plans to merge the AspenTech and B-JAC teams?
AspenTech and B-JAC are working to quickly bring together their two organizations to fully take advantage of their respective technology leadership in process modeling and heat exchanger design. B-JAC is now a business unit of AspenTech's Process Simulation and Design Division. Su Ahmad, has been named as the business director of the B-JAC business unit. David Garrison has been named as the B-JAC technical manager. B-JAC's Midlothian (near Richmond), Virginia office now becomes a development and support group focusing on the B-JAC products.