ITC Infotech has acquired a part of the product lifecycle management software business of Nasdaq-listed PTC for a deal value of $115 million.

With the acquisition, the wholly owned IT subsidiary of the conglomerate will get to lead the adoption of PTC’s industry-leading ‘Windchill’ software as a service (SaaS) which is designed to accelerate the digital transformation of customers.

Under the agreement, ITC Infotech has acquired a substantial part of PTC’s PLM consulting and professional services business including 160 PLM consultants and services experts, and created a new business unit, DxP Services, bringing together PLM professionals from both companies.

This new business unit within ITC Infotech is being led by Patrick Bionducci who previously led PTC’s global services business. ITC Infotech will now collaborate with PTC to develop joint offerings to accelerate customer digital transformation initiatives, focused on the adoption of PTC’s Windchill+ PLM SaaS offering.

With the closing of the transaction, ITC Infotech will deepen its presence in the EU, UK, the US and Brazil among others, and potentially become an important SaaS system integrator globally.

ITC Infotech has paid $33 million in cash with the closing of the transaction. The remainder of $82 million of the deal is going to consist of a mix of committed and contingent items deliverable over a period of 5 years in accordance with the agreement.

“Together with ITC Infotech, we are creating a specialised team to unlock the potential of our Windchill services business and accelerate manufacturers’ ability to realise the benefit of SaaS, such as accessibility, security and a lower total cost of ownership,” said Jim Heppelmann, president and CEO of PTC.

Sudip Singh, managing director and CEO of ITC Infotech, commented on the deal: “The creation of DxP services will take our relationship to a whole new level and enable PTC customers to transform the way they adopt technology in the distributed, secure and agile workplace of the future.”