Architosh Staff (info@architosh.com)

17 Jan 2001

Bentley and Intergraph Complete $40 Million Acquisition

Architosh Press Report: Bentley and Intergraph Complete $40 Million Acquisition

Huntsville, Al. and Exton, Pa. - January 2, 2001 - Intergraph Corporation and Bentley Systems, Incorporated announced today the completion of Bentleyâs acquisition of Intergraphâs civil engineering, plot-services and raster-conversion software businesses, which represent about $30 million of annual revenue. The consideration, totaling about $40 million, included a cash payment and installment note payable over three years.

Over the past several months, the two companies have coordinated the transfer of the management, development, technical support and field personnel dedicated to these products, along with all maintenance and distribution arrangements, from Intergraph to Bentley. Under local agreements, many worldwide Intergraph units will continue to offer these and other Bentley products, such as its flagship MicroStation. During 2001, Intergraph service contracts will be transitioned to the Bentley SELECT technology and services subscription program.

"This transaction is very significant to our marketplace and our users, for two reasons," said Bentley CEO Greg Bentley. "First, the consolidation of these leading Intergraph products within Bentleyâs portfolio brings Bentley worldwide leadership positions in two E/C/O segments with tremendous growth opportunities: civil engineering and plotset content management. But just as importantly, it demonstrates our commitment with Intergraph to maximize the market standing of each company within its targeted businesses. Together, our two companies will seize the opportunity to provide a greater market footprint and more comprehensive capabilities than any competitor." He concluded, "We look forward to further realizing value for Bentleyâs and Intergraphâs shareholders."

"The acquisition of these businesses by Bentley is a very satisfying outcome for our customers, employees and shareholders," Intergraph CEO Jim Taylor said. "While our 30%-plus ownership in Bentley makes us its largest shareholder, we also share with Bentley an ingrained commitment to deliver continuous improvement to our joint user community. Consolidating these particular broadly utilized product lines within Bentley enables Intergraph to more intensely focus on the missions of our six vertical businesses. I am confident that Bentleyâs own concentration will result in the highest return on our mutual investments to date in civil, plotting and raster businesses."

Architosh Analysis: All of this Bentley business is of little concern these days to Macintosh users. As Bentley has put all Macintosh and Unix development on hold, significant new product offerings will not likely trickle down to existing Macintosh-based Bentley users (subscribers). If in the future Bentley recommits to their existing (and future) Macintosh user base, possible Intergraph product lines could affect Mac customers.