Covington Associates Advises Workgroup Technology Corporation On Acquisition by SofTech Inc.
Boston M&A Advisory Firm Marks 17th Transaction Since Mid-2001
BOSTON – Nov. 15, 2002 – Covington Associates announced today that its client, Workgroup Technology Corporation (“Workgroup”) of Burlington, Mass., has signed a definitive merger agreement with SofTech, Inc., of Tewksbury, Mass., successfully completing a deal that will allow Workgroup Technology to extend its offerings in the product data management marketplace.
The acquisition of Workgroup by SofTech, Inc. (OTCBB: SOFT) marks Covington’s 17th transaction in the past 16 months and the second successful deal announced this week by the M&A advisory firm focusing on technology and healthcare.
Workgroup (OTCBB:WKGP) is a leading provider of product data management software used in optimizing the development of products by mid-sized and global companies, including General Electric, Honeywell, the U.S. Army, and Whirlpool Corporation. SofTech creates and markets design engineering software and has interfaced Workgroup’s product with its Cadra product line. Under the merger agreement, a newly formed subsidiary of SofTech will purchase Workgroup for $2 per share.
“As a small technology company, Workgroup needed a strategic partner that would help build critical mass and extend its current product offerings,” said Ben Dunn, a Covington Associates partner who worked closely with the firm on the acquisition process. “The technology is a natural fit, and Workgroup can continue to differentiate itself in the product data management marketplace through further integration with SofTech’s product lines.”
The Workgroup transaction is the latest in a series for Covington Associates, which specializes in M&A advisory services to technology and healthcare firms. The company has advised many rapidly growing companies including Torrent Systems, Inc., Visualization Technology, Inc., and Inverness Medical Technology, a manufacturer of products focused primarily on diabetes self-management, which was acquired by Johnson & Johnson for $1.3 billion in November 2001.
About Covington Associates
Covington Associates are seasoned M&A advisors to technology and healthcare. Focused exclusively on mergers and acquisitions, Covington Associates has established a track record of success based on deep domain experience and an unrivaled level of service from a team of senior advisors. Since its founding in 1991, Covington Associates has successfully completed transactions ranging in value from $10 million to more than $1 billion.