Chapter 9. High-Technology Sector
Parametric Technology Corporation and Computervision
Computervision, a market leader in CAD/CAM (computer-aided design/computer-aided manufacturing) products in the early 1980s, ran into financial difficulty for two reasons: Its competition overtook it technologically, and it was overleveraged after a hostile takeover and LBO. The solution was a purchase by Parametric Technology Corporation, a younger, more nimble competitor.
Background of Computervision
Computervision, founded in 1972, was a pioneer in CAD/CAM. At first it sold hardware and software bundled as a turnkey package. In 1982 it had a leading 25 percent market share and earned $45 million on $435 million in sales. It had a 15.8 percent operating margin ...
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