S&P: MSC Software on positive watch

S&P said it placed the ratings on MSC Software Corp., including the B- corporate credit rating, on CreditWatch with positive implications.

The positive watch follows news that Hexagon has agreed to acquire MSC for $834 million in cash, S&P said.

MSC and Hexagon announced that they expect the transaction to close in April 2017.

The agency said it believes that Hexagon has a significantly stronger financial risk position and lower leverage than MSC, as well as a larger and more diversified business mix.

MSC provides computer-aided engineering solutions that enable engineers to validate and optimize their designs using virtual prototypes, S&P said.

The agency said it plans to withdraw the corporate credit and issue-level ratings on MSC if the company's outstanding debt is fully repaid when the transaction is completed as expected in April 2017.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.