Siemens Digital Industries Software has confirmed an agreement to acquire assets of ESTEQ, a distributor of product lifecycle management, product design and simulation, and manufacturing operations software and services.

ESTEQ is headquartered in Pretoria, South Africa, and has locations across the region serving the aerospace & defense, transportation, consumer products, energy, electronics, machinery, mining & minerals, and oil & gas industries.

"Through the acquisition of ESTEQ, Siemens Digital Industries Software will now have a direct presence in the South Africa market which will enable Siemens to expand and enhance how we support and service our customers across the region," said Edwin Severijn, Senior Vice President, Europe Middle East and Africa, Siemens Digital Industries Software. "The combination of ESTEQ's local knowledge and Siemens expertise makes it easier than ever before for manufacturing companies to tap into Siemens' full software portfolio."

According to a statement issued to the media, Siemens will incorporate ESTEQ into new software focused sales organisations in South Africa and UAE, "gaining direct presence to expand and grow the support and services to customers across the regions."

"With ever-increasing pressure from their customers and competitors, manufacturers across the region must rethink every aspect of their business," said Ralf Leinen, Senior Vice President, Siemens Digital Industries, Southern and Eastern Africa.

"With our established and comprehensive knowledge of the South African market we can offer our customers the best and most appropriate products, solutions and services that can used to take advantage of new and disruptive technology across their operations."

Cobus Oosthuizen, chief executive officer, ESTEQ, said, "For over 25 years, ESTEQ has had a strong partnership with Siemens, developing and growing its engineering and manufacturing software and services business across the Southern African and Gulf regions. We are excited to join Siemens, so our customers will not only benefit from the existing relationships and local expertise that the ESTEQ team provides but will also benefit from the extended range of technologies and industry expertise that we can offer as part of Siemens."

The asset sale and purchase transaction is due for completion in the third calendar quarter of 2019.

The parties have agreed not to disclose any details of the transaction. The Test and Measurement business which formed part of the ESTEQ Group is not part of the transaction and will continue as a separate and independent business.