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Subsequent Events
9 Months Ended
Jun. 28, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
Acquisitions
Atego
On June 30, 2014, PTC acquired Atego Group Limited, Inc., a developer of model-based systems and software engineering applications for approximately $50 million in cash. At the time of the acquisition, Atego had approximately 110 employees and historical annualized revenues of approximately $20 million. We have not yet completed our acquisition accounting for Atego.
Axeda
On July 23, 2014, PTC entered into an Agreement and Plan of Merger (the "Merger Agreement") with Aztec Acquisition Corporation, a wholly-owned subsidiary of PTC ("Merger Sub"), Axeda Corporation ("Axeda"), and Fortis Advisors LLC, as the Securityholder Representative, to acquire Axeda for approximately $170 million in cash, subject to adjustment as set forth in the Merger Agreement. We expect to borrow $170 million under our existing credit facility to fund the acquisition.
The Merger Agreement has been approved by the boards of directors of PTC and Axeda. We expect to close the transaction in mid August 2014, subject to customary closing conditions and regulatory approvals, at which time Axeda will become a wholly-owned subsidiary of PTC.
The Axeda acquisition is expected to add $25 million to $30 million of revenue in 2015. Axeda has approximately 160 employees, primarily located in the United States.
In the fourth quarter of 2014, in conjunction with our accounting for the acquisitions of Atego and Axeda (if completed), we expect to record a non-cash tax benefit due to the recording of deferred tax liabilities related to the tax effect of acquired intangible assets that are not deductible for income tax purposes and the resulting reduction in the U.S. and U.K. valuation allowance on net deferred tax assets.
Share Repurchases
On August 4, 2014, our Board of Directors authorized a share repurchase program for up to $600 million of our common stock through September 30, 2017.  As part of the repurchase program, we intend to enter into a $125 million accelerated share repurchase agreement in the fourth quarter of fiscal 2014.  We intend to use cash from operations and borrowings under our credit facility to make such repurchases.