PHOENIX, AZ (October 12, 2004) – Honeywell last week announced a definitive agreement to acquire the intellectual property of the HYSYS modeling software and the Operator Training Simulation (OTS) business from Aspen Technology Inc.
The terms of the transaction provide for a $6 million cash payment by Honeywell to Aspen Technology in consideration of a transfer of ownership of the intellectual property of its Hyprotech products, and its operator training business. Honeywell will assume $4 million of accounts receivable from Aspen Technology as part of the transaction.
The acquisition is expected to close within the next 30 to 90 days, pendingFederal Trade Commission approval.
The acquired technologies will enhance the ability of Honeywell’s Experion Process Knowledge System to gather data throughout the plant, coupling it with domain knowledge embedded in HYSYS models, Honeywell said, adding it will place information in front of decision-makers in an “actionable” format.
Honeywell said the addition of the new HYSYS technology and OTS business will allow customers to examine data in four areas:
·Better process performance that helps the plant process achieve themaximum output/yield.
·Better asset effectiveness by deciding when/where/how to operate,maintain or repair equipment.
·Better business decision-making when choosing which orders to take,which plant to use, when to deliver, and at what price.
·Better operator effectiveness through training on startup, shutdown,upsets and abnormal circumstances.
“Today’s process operations are increasingly complex,” said Jack Bolick, president of Honeywell Process Solutions. “Operators not only manage profitability, they also work to comply with regulations and product quality constraints.”
With this acquisition, Honeywell said it will be able to further enhance its Shadow Plant simulation offerings by merging capabilities offered by the Aspen OTS andHyprotech technologies, and leveraging customers’ own intellectual propertyembedded in existing HYSYS models.
Additional terms of the deal include 1) a retention of a license to the Hyprotech products by Aspen Technology that provides for the continuation of its rights to market, sell and develop Hyprotech products, 2) a three-year agreement not to compete in operator training services by Aspen Technology, and 3) a two-year support agreement under which Aspen Technology will provide Honeywell with source code to its new releases of the Hyprotech products transferred.
Honeywell International, based in Morris Township, NJ, is a $23 billion technology and manufacturing company, involved in aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials.