Honeywell To Acquire Operator Training Business And Simulation Technology From Aspen Technology

Honeywell (NYSE: HON) announced today a definitive agreement to acquire the intellectual property of the HYSYS® modeling software and the Operator Training Simulation (OTS) business from Aspen Technology Inc.

The acquired technologies will extend the capabilities of Honeywell’s Experionâ„¢ Process Knowledge System (PKS) by enhancing its ability to gather data throughout the plant, coupling it with domain knowledge embedded in HYSYS models and advanced solutions. The combined solution allows Honeywell to help drive customer profitability by placing information in front of decision-makers in an actionable format.

Specifically, the addition of the new HYSYS technology and OTS business allows customers to turn data into knowledge in four interlinked areas:
– Better process performance that helps the plant process achieve the maximum output/yield.
– Better asset effectiveness by deciding when/where/how to operate, maintain or repair equipment.
– Better business decision-making when choosing which orders to take, which plant to use, when to deliver, and at what price.
– Better operator effectiveness through training on startup, shutdown, upsets and abnormal circumstances.

“Today’s process operations are increasingly complex. Operators not only manage profitability, they also work to comply with regulations and product quality constraints,” said Jack Bolick, president of Honeywell Process Solutions. “Powerful, integrated, automation-based solutions and a well-trained staff are an essential requirement. This acquisition not only allows us obtain great new additions to our product portfolio, but we gain an incredible amount of process knowledge and experience from the new employees joining Honeywell, and we are committed to ensuring a seamless transition of in-progress customer projects.”

With this acquisition, Honeywell reinforces its commitment to providing a comprehensive suite of advanced solutions for its customer base. In addition, Honeywell will be able to further enhance its Shadow Plant® simulation offerings by merging capabilities offered by the Aspen OTS and Hyprotech technologies, and leveraging customers’ own intellectual property embedded in existing HYSYS models – ultimately providing a more robust and thorough operations and training solution to customers.

The terms of the transaction provide for a $6 million cash payment by Honeywell to AspenTech in consideration of a transfer of ownership of the intellectual property of the Hyprotech products, and its operator training business. Honeywell will assume $4 million of accounts receivable from AspenTech as part of the transaction. Additional terms include 1) a retention of a license to the Hyprotech products by AspenTech that provides for the continuation of its rights to market, sell and develop Hyprotech products, 2) a three-year agreement not to compete in operator training services by AspenTech, and 3) a two-year support agreement under which AspenTech will provide Honeywell with source code to its new releases of the Hyprotech products transferred.

The acquisition is expected to close within the next 30 to 90 days, pending Federal Trade Commission approval.

Honeywell International is a $23 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor’s 500 Index. www.honeywell.com .

Honeywell Process Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Process Solutions, access www.acs.honeywell.com .

This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.

Experion™ is a trademark and Shadow Plant® is a registered trademark of Honeywell International Inc.

HYSYS® is a registered trademark of Aspen Technology Inc.