EDS to sell software business for $2.1bn.

Financial News, March, 2004

Electronic Data Systems was on Sunday completing an agreement to sell its UGS-PLM software business to a private equity consortium for $2.1bn ([euro]1.7bn).The sale to Warburg Pincus, Bain Capital and Silver Lake Partners will raise much-needed capital for the world's second largest information technology services company, which last year embarked on a restructuring plan after a sharp fall in revenues and profits in late 2002.

At 2.3 times the $897m that the PLM unit posted in revenue last year, the valuation topped predictions made by Michael Jordan, chief executive of EDS, earlier this year when he said PLM would be worth around $1.2bn.