Many companies don’t pay enough attention to service lifecycle management, PTC says (Photo: Servigistics)

PTC has signed a definitive agreement to acquire Servigistics in a move it says will expand its offering of service lifecycle management (SLM) products.

The US-based business software group said the addition of Servigistics' products will help it provide a broader and more competitive offering in this area.

Servigistics has a strong position in the market for service parts planning, management and pricing, field service management and returns and repair management. PTC's existing portfolio of SLM solutions includes warranty and contract management, service parts definition, and technical information, including mobile delivery.

PTC is paying 220 million dlrs in cash for Servigistics. The acquisition, which still requires regulatory approval, is expected to close next month.

PTC CEO Jim Heppelmann said SLM technology is playing a key role in making service a profit center, rather than a cost center. "Servigistics has earned a reputation for innovation in helping companies maximize their global service businesses through increased profitability, cash flow, and customer loyalty," he said in a press release.

For PTC, SLM is a growth market because few companies have a coordinated strategy or an integrated technology suite designed to better manage services. "For leading manufacturers, getting their service strategy right presents a multi-billion dollar, high-margin revenue opportunity to differentiate themselves in the market," PTC said.