Las Vegas in June . . . Good idea or bad idea? I’ll try and stay neutral on this one, but this town is not exactly my favorite, regardless of time of year. However, it’s always worth the trip when a company like Hexagon invites me for its annual international conference, HxGN LIVE 2017.
What is today Hexagon Manufacturing Intelligence (MI) grew up and out of what was known as Hexagon Metrology because it has grown far beyond just measurement to encompass virtually all aspects of product development from design and manufacturing (with the acquisition of Vero Software) to simulation (with the acquisition of MSC Software) to inspection and statistical analysis (with the acquisition of Q-DAS). This is all literally tied together with the so-called Hexagon Digital Thread. The newest part of this digital thread is Smart Quality, an online quality lifecycle management software platform that uses the quality data stream across the various phases of manufacturing, providing knowledge through comprehensive statistical analysis, visualization, and workflow management that enable real-time process improvements. I found Smart Quality to be one of the most interesting and significant aspects of HxGN LIVE 2017 (with more to come about it specifically in the near future).
Hexagon’s President and CEO, Ola Rollen at HxGN LIVE 2017
Hexagon is an interesting company and its growth and value have been enormous over the past few years, especially after hearing the company’s President and CEO, Ola Rollen, admit that 10 years ago virtually no one knew who or what Hexagon was. Since 2000, Hexagon has acquired around 100 companies, such as Intergraph, Brown & Sharpe, and more recently, MSC Software. According to Rollen, 50 percent of Hexagon’s growth can be attributed to acquisitions and 50 percent to organic growth, but that the latter will become a bigger contributor going forward. (more…)
A lot has gone on in the past couple months at metrology giant Hexagon AB, so let’s have a look.
For starters, Hexagon AB, announced recently that it was acquiring MSC Software Corp. for $834 million cash. While not quite as big, the acquisition is Hexagon’s largest deal since it bought Intergraph for $2.1 billion in 2010.
MSC Software is the the company that has brought products that include Nastran, Patran, Marc, and Apex to market. 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.
As I noted when the acquisition was first announced, acquiring MSC provides Hexagon with a strong foothold in the competitive simulation/analysis market with MSC’s diverse portfolio of CAE applications.
Hexagon: Shaping Smart Change
As it has with all recent acquisitions, Hexagon plans for MSC to run as an independent business unit within the Hexagon Manufacturing Intelligence (MI) division, that focuses on automotive, aerospace, machinery, consumer electronics, and other discrete manufacturing markets, getting close to offering comprehensive end-to-end solutions in these diverse workflows. About the only link missing is a true CAD component and I can think of several possible targets for closing this gap.
Process-oriented solutions are essential for manufacturers, and MSC’s applications definitely address design and engineering processes through simulation and analysis.
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.
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.