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ITC Infotech and PTC have announced the closing of the transaction contemplated between the parties under the Strategic Partner Agreement announced in April.

The transaction is designed to accelerate customer digital transformation initiatives and the adoption of PTC's industry-leading Windchill product lifecycle management (PLM) software as a service (SaaS).

Under the agreement, ITC Infotech has acquired a substantial portion of PTC's PLM consulting and professional services business, including approximately 160 PLM consultants and services experts, and created a new business unit, called 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. As a trusted and preferred partner, ITC Infotech will collaborate with PTC to develop joint offerings to accelerate customer digital transformation initiatives, focused on the adoption of PTC's Windchill plus PLM SaaS offering.

Thousands of PTC customer systems are expected to be converted to the cloud as part of the multi-year roadmap for the new business unit. To ensure consistency and accuracy of these SaaS conversion projects, PTC and ITC Infotech are bringing together professionals from both companies into a unified global practice which will create offerings, including the tooling and methodologies required, and execute programs to accelerate the adoption of PTC's next generation PLM solutions.

DxP Services represents one of the largest organisations of Windchill professional services expertise in the industry. It is enabled by rich domain and technical knowledge of a team of experts committed to accelerating customer digital transformation journeys.

ITC Infotech has also deepened its presence in Austria, Brazil, Canada, Denmark, France, Germany, Italy, the Netherlands, Poland, Romania, Sweden, Switzerland, the UK, and the US with this transaction, and envisions becoming one of the leading SaaS systems integrators globally.

The overall commitments of ITC Infotech under the agreement are estimated at around $115 million, of which $33 million in cash was received by PTC at the closing of the transaction, with the remainder consisting of a mix of committed and contingent items deliverable over a period of 5 years in accordance with the terms of the agreement.