Cluster-analysis method: Unweighted Pair-Group Centroid.
The centroid of a cluster is the average point in the multidimensional space defined by the dimensions. In a sense, it is the center of gravity for the respective cluster. In this method, the distance between two clusters is determined as the difference between centroids. Sneath and Sokal (1973) use the abbreviation UPGMC to refer to this method as unweighted pair-group method using the centroid average.
This discription has been taken from the standard STATISTICA packege, Help-option.