This week MSC Software Corporation, the company that brought you such products as Nastran, Patran, Marc, and Apex, announced that it had reached an agreement to be purchased by Hexagon AB for $834 million cash. Like all corporate acquisitions, this one is subject to clearance and standard regulatory filings, and is expected to be completed in April. For more than 50 years MSC has been a leading provider of CAE solutions, primarily simulation software for virtual product and manufacturing process development, and was one of the first 10 commercial software companies.
With 2016 proforma sales of $230, MSC will continue to run as an independent business unit within Hexagon’s Manufacturing Intelligence (HMI) division. HMI’s main businesses are in the automotive, aerospace, machinery, consumer electronics, and other discrete manufacturing markets. Process-oriented solutions are essential for manufacturers, and MSC’s products address key design and engineering processes for CAE.
“Our mission continues to be laser-focused on driving leadership in simulation tools, with solutions from materials to systems, said Dominic Gallello, President & CEO of MSC Software. “We will continue to work toward delivering breakthrough value to our customers. Although our mission and roadmap does not change, we anticipate that our ability to offer additional process oriented solutions from design to manufacturing will be enhanced by joining forces with Hexagon.”
As for the future of MSC Software, Mr. Gallello said, “Hexagon considers MSC’s management team, along with all MSC employees, to be an extremely valuable asset. No personnel changes are anticipated as a result of this transaction. Additionally, Hexagon is a strong believer in MSC’s product roadmap and growth plans. No changes to MSC’s current product roadmap are planned. MSC’s mission continues to be a leader in simulation tools, solutions from materials to systems and related services. Our aim is to continue to deliver breakthrough value to our customers.”
Hexagon AB is built upon three major business units: Leica Geosystems, Intergraph, and Hexagon Manufacturing Intelligence (HMI). MSC will be integrated within HMI, because of the obvious overlap in customer base between the two groups. MSC will operate independently while in coordination with other functions and business units to execute on technology and commercial synergies.
We were in the land of Disney this week in Anaheim, California attending HxGN Live 2016, Hexagon’s international user conference. Millions of kids are now out of school and it seemed like a good percentage of them were in town to visit Mickey Mouse and company.
A little over six months ago, what was known as Hexagon Metrology became Hexagon Manufacturing Intelligence, a major rebranding to reflect its increasing capabilities in data-driven manufacturing. Much of the rebranding was enabled by Hexagon’s acquisitions that broadened its historical scope, such as the acquisition of Vero Software, a diverse CAD/CAM vendor. Surprisingly, Vero had a relatively minor presence at HxGN Live this year, but that is supposed to change at next year’s HxGN conference. (more…)
A few months ago I went to an event that was new to me, Hexagon Metrology’s big U.S. event, HxGN. The conference was specifically targeted for metrology (science of measurement) with regard to sensing, inspection, QA, and reverse engineering applications – in other words what, Hexagon Metrology is all about.
However, metrology was not the only area represented, as the company known as Hexagon AB also has a huge presence with its hardware, software, and services in other industry segments, such as geospatial (GPS and surveying); process, power, and marine (PP&M); and security, government, and infrastructure (SG&I). It was a lot to take in and I focused on industrial metrology and related technologies – sensors and software used for optimizing manufacturing processes and throughput. I was especially interested in optimizing manufacturing processes with metrology because I have felt that this is a gap that genuinely needs to be filled.
The core of Hexagon Metrology’s business is sensing – the acquisition of information about an object with (touch probe, CMM) or without (laser, visible light) making physical contact for purposes of precise measurement for a variety of purposes. For example, measuring quality is becoming more prevalent earlier in the manufacturing process, and not just measuring a product as it comes off a production line. Earlier measurement and inspection to ensure ultimate quality are analogous to what simulation used to be – often an afterthought. Today, however, an increasing number of manufacturers are realizing the value that both simulation and measurement can provide if applied earlier in the design and manufacturing processes.
One of Hexagon’s customers who spoke during the conference said that earlier measurement has made it reorder its priorities in making its products “better before cheaper.”
A couple of weeks ago I attended the Hexagon Global Network (HxGN) 2015 Live conference. Although not held in my favorite destination, Las Vegas, this was an opportunity for my first direct exposure to Hexagon. In a word, I was not disappointed. In fact, the experience went far beyond my modest expectations that I had before attending the event.
I went to HxGN specifically for the metrology (science of measurement) portion of the conference with regard to sensing, inspection, QA, and reverse engineering applications – in other words what Hexagon Metrology is all about. However, metrology was not the only area represented, as the company known as Hexagon AB also has a huge presence with its hardware, software, and services in other industry segments, such as geospatial (GPS and surveying); process, power, and marine (PP&M); and security, government, and infrastructure (SG&I). It was a lot to take in and I focused on industrial metrology and related technologies – sensors and software used for optimizing manufacturing processes and throughput.
Founded in 1992 and headquartered in Stockholm, Sweden, Hexagon AB has offices in 46 countries, 15,000+ total employees, and is R&D focused with 11% of net sales and more than 3,400 employees invested in R&D. The industrial side of Hexagon AB, known as Industrial Enterprise Solutions (IES), that includes manufacturing and industrial plant facilities accounts for about half of the company’s sales. Roughly one third of Hexagon’s business is derived from metrology.
As we said a little over a month ago, we have witnessed the ongoing and perpetual consolidation of the CAD/CAM industry as companies continue to get swallowed up by others.
We’ve witnessed CAD companies acquiring CAD/CAM companies, simulation companies acquiring CAD companies, and other types of technical software and service companies acquiring CAD/CAM companies. With all the attention seemingly focused on the CAD/CAM side, it’s sometimes easy to forget that there also has been a significant consolidation through acquisition on other sides of technical software as well over the past several years. In other words, with these other acquisitions technical software circles of all types continue to get smaller.
This time around its 3D scanning giant, FARO Technologies, and its recent acquisitions of kubit (AEC point cloud processing software) and ARAS 360 (crime reconstruction/forensic software). Founded in 1981, FARO Technologies Inc. develops and markets portable 3D measurement systems for computer-aided manufacturing measurement.