Moldflow Corp. announced one acquisition and killed another.
Moldflow said Jan. 10 that it signed a letter of intent to acquire Branden Technologies Inc., known for its Shotscope plantwide management system. At the same time, it has canceled another deal to buy some assets from XBox Technologies Inc., the former Nicollet Process Engineering Inc.
Moldflow of Wayland, Mass., specializes in software to simulate how plastic will flow into an injection mold. With the company's Plastics Xpert software, Moldflow has diversified into products that can set up injection molding machines and monitor production.
Now Moldflow wants to add full plantwide management systems, linked to its press-monitoring products. Following that strategy, last November, Moldflow announced it signed a nonbinding letter of intent to purchase part of Xbox's FullMetrics Inc. in Eden Prairie, Minn.
Now Moldflow is saying in a news release that, following due diligence, Moldflow "determined that product integration would be impractical." Interviewed Jan. 11, Marc Dulude, Moldflow's president and chief executive officer, said officials discovered that the architecture was too different between the two companies' software.
Moldflow said the letter of intent with Branden Technologies also is nonbinding. Moldflow is traded in the Nasdaq stock market.
FullMetrics officials did not return telephone calls seeking comment.
Moldflow is offering to pay $3.5 million for Branden Technologies, which is based in Wilsonville, Ore. Branden develops software and hardware for real-time process and production monitoring in the plastics and die casting industries. Its Shotscope and EZ-Track plantwide systems gather process data and generate reports for management and shop-floor personnel.
The $3.5 million purchase price includes repayment of outstanding debt and acquisition of all outstanding shares of stock.