Autodesk to acquire Alias

Autodesk announced that it has signed a definitive agreement to acquire Alias, a privately held developer of 3D graphics technology, for $182 million in cash. This acquisition will grow Autodesk's expertise and offerings for the design of consumer products and automotive as well as in the media and entertainment markets. Autodesk anticipates that the transaction will close within the next four to six months.

"This acquisition brings to Autodesk a talented group of individuals, technologies and a set of products," said Carl Bass, COO of
Autodesk. "Alias' technology spans several of our most important markets and augments the synergy between our design and media businesses. Our design customers are demanding more powerful visualization, animation and publishing capabilities. Our media and entertainment customers are increasingly using the data created by our design applications for broadcast, film and games projects. By combining the technology and talents of our two companies, we will be better able to continue delivering solutions that address our customers' complex needs."

"This acquisition is designed to leverage the strengths of both companies," stated Doug Walker, President and CEO of Alias. "Alias' customers will benefit from nearly $300 million in R&D spending while having access to new and complementary products and technologies. Together, Autodesk and Alias will deliver products and services that give form to great ideas from the fantasy world of film to the factory floor."

The acquisition is subject to a number of closing conditions, including regulatory approval. Targeted
non-GAAP EPS for this transaction, which excludes in-process R&D expenses, acquisition-related restructuring costs, equity-based compensation expenses, and the reduction of deferred revenues assumed by Autodesk as required by US
GAAP, is expected to be slightly accretive to earnings in fiscal 2007. Autodesk is currently unable to provide estimates of the future impact of this transaction on GAAP earnings per share. Founded as Alias Research in 1983, Alias is headquartered in Toronto, Canada. Alias' product lines comprise sketching, animation, visual effects, design, modeling, rendering and reviewing solutions.

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