Platinum Technology to Acquire Data Modeling Leader Logic Works
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Platinum Technology, Inc. has announced it has signed a definitive agreement to acquire Logic Works, Inc., which offers one of the industry's best-selling data modeling solution. Together, Platinum and Logic Works will offer a comprehensive solution for modeling application components, databases and business processes. The combined offerings of both companies will provide a solution for application developers, database administrators and data warehouse managers.

Through the use of enterprise modeling, an organization can build a strong information technology foundation by defining its business processes and creating a "blueprint" of its application and data requirements, and how they relate to one another. This enables an organization to more easily reuse and share data and application components, and improve communication between business and development teams. The market for enterprise modeling solutions is expected to grow to $1.9 billion by 2001.

"This accretive acquisition is a significant addition to Platinum's business, and will greatly benefit customers, employees and shareholders," said Andrew "Flip" Filipowski, president and CEO of Platinum. " Through our complementary markets and distribution channels, we will accelerate revenue growth and create a rich environment for sales in application lifecycle, data warehouse and database management solutions."

"Combining Logic Works and Platinum steps up our industry-leading enterprise modeling position," said Gregory A. Peters, president and CEO of Logic Works. "The Logic Works product suite has seen steady adoption at the enterprise level over the last 18 months, with an accompanying increase in profitability and sales productivity. Unlike other vendors, Platinum offers a broad perspective of the IT enterprise that will strengthen our offering to a diverse group of customers. Joining Platinum will clearly accelerate our successful business strategy."

"Platinum and Logic Works have a tremendous amount of combined talent in enterprise modeling," said Ed Miller, senior vice president of application lifecycle solutions for Platinum. "The combination of Logic Works' ERwin, the award-winning data modeling solution, and Platinum Paradigm Plus, a leading object-oriented analysis and design solution and the first implementation of the Object Modeling Group's Unified Modeling Language, establishes Platinum as the leader in the enterprise modeling market."

Under the terms of the acquisition, Logic Works will become a wholly-owned subsidiary of Platinum. Platinum will exchange .5769 of a share of Platinum common stock for each share of Logic Works common stock. Based on Platinum's closing price of $26.56 on March 13, 1998, the implied purchase price for Logic Works is approximately $174.8 million, net of cash and option proceeds and before transaction expenses. The acquisition, which has been approved by the boards of both companies, is subject to the filing of a registration statement with the Securities and Exchange Commission, the approval of shareholders of Logic Works, and other legal and regulatory conditions customary in such agreements. The acquisition is expected to be additive to Platinum's earnings per share following the closing of the transaction. It is expected that the acquisition -- anticipated to be completed in mid-1998 -- will qualify as a tax-free reorganization and be accounted for as a pooling of interests.

For more information on Logic Works' products and services, visit the Logic Works Web site at http://www.logicworks.com For information on Platinum, visit http://www.platinum.com