MUNICH, Germany-Transportation and manufacturing automation company Siemens AG is acquiring product lifecycle management (PLM) software company UGS Corp. (Plano, TX) for $3.5 billion in an effort to boost its digital manufacturing product line and capabilities.

UGS employs approximately 7,300 worldwide, with some 46,000 customers in 62 countries, including those in the automotive, aerospace, defense, consumer goods, electronics and machinery industries. The company’s product line includes software that enables computer-aided design, computer-aided manufacturing, computer-aided engineering and digital manufacturing simulation. The company reported revenues of approximately $1.2 billion in 2005.

“With the acquisition of UGS, we combine its competence in the sector of digital factories with our leading know-how in industrial automation. This combination makes our customers’ processes faster, better and more cost efficient,” says Siemens President, Klaus Kleinfeld.

According to Siemens, the current world market for PLM software and services is approximately $13 billion, with projected yearly growth rates of 7 percent to 9 percent.