March 22, 2004
EDS Selling UGS PLM Solutions For $2.05 Billion
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From the beginning it was pretty clear that UGS PLM probably would not be acquired by a competitor, staving off, at least for now, MCAD market volatility and further MCAD vendor consolidation. Since February when things started to heat up and get serious, I didn't expect this acquisition to drag out for many months or years - there was just too much at stake for EDS, customers, and possible suitors. EDS needed the cash that a sale would bring and chose the best route for acquisition - three equal partners.
It appears as though the current management team (including the current president, Tony Affuso) will stay in place with the UGS PLM NX product line continuing to be developed and supported as in the past with minimal disruption. A new board of directors will be formed, but EDS will no longer have a seat.
According to Jim Phelan, director of Marcom for UGS PLM Solutions, the acquisition will let the company continue to conduct business as usual. "The acquisition will let us react more quickly, respond to market needs, and act more independently," he said.
I posed the following questions to Mr. Phelan regarding the acquisition and below are his responses:
There are no immediate plans for a name change or any changes to product branding. Those decisions would be made by UGS PLM company management in concert with the UGS PLM Solutions board of directors where appropriate.
EDS' Q1 earnings call is scheduled for April 26.
There are no plans to change the positioning of Solid Edge within the UGS PLM mix.
Yes. The philosophy of the investment partners is to focus on high quality solutions and world-class customer care. As a result, investments in R&D will be maintained at a high level to ensure the industry leading quality and functionality our customers have come to expect.
Yes. Keeping our customers informed has always been a high priority for UGS PLM Solutions and this situation is no different. We have already communicated directly with several key customers and a letter from Tony Affuso is being distributed worldwide by our global sales force to assure customers that we will continue to provide them with the same high level of service and support that they expect and deserve.
Yes, the transaction is expected to be complete within 60 to 90 days after the announcement date of March 14, 2004.
All in all, this sounds like a pretty positive move for all parties concerned - customers, EDS, and the acquiring partners. A win-win-win proposition, if you will. Just the sheer magnitude of this acquisition and its customer base are reasons enough to follow how UGS PLM continues to evolve in the ultra-competitive MCAD marketplace.
Delmia V5 R13 - Detailing And Validating Digital Manufacturing Processes
Delmia Corp., a Dassault Systemes company announced the release of DELMIA Version 5 Release 13 (V5R13). DELMIA, for the engineering of lean manufacturing processes, is part of Dassault Systemes' product lifecycle management (PLM) portfolio, also comprised of CATIA, for collaborative product development, and ENOVIA and SMARTEAM, for product data and life cycle management, collaboration, and decision support.
DELMIA V5R13 has been designed in partnership with several manufacturers and their supply chains in order to support major new product programs. The new release introduces key innovations that advance the collaborative definition of manufacturing processes.
For example, these new capabilities enable an OEM to export a portion of its manufacturing process plan, including product, process and resource (PPR) data, to a supplier for detailing and validation. Once detailing is completed, the OEM can reconcile any changes back into the DELMIA manufacturing hub. Collaboration between the OEM and its supplier are more efficient and effective and aid in the overall streamlining of the process planning efforts.
"Collaboration throughout the extended enterprise is a necessity for all manufacturing industries where connectivity between OEMs and suppliers are critical for competitiveness, said Philippe Charles, CEO, Delmia Corp. "DELMIA V5R13 is a major step forward toward enabling innovation in manufacturing engineering."
V5R13 further supports the production use of DELMIA's solution for manufacturing process planning, detailing, optimization, and validation in the automotive and aerospace domains. DELMIA's V5 Process Planning Solutions provide breakthrough technologies that dramatically reduce the amount of time it takes to update large product structures between the engineering hub and the manufacturing hub. Enhancements for incremental updates and partial product transfer reduce this update time by as much as 90%, as compared to previous releases.
V5R13 now enables the process planner to reuse a single product model within the process plan (for example, passenger seats in an airplane) while storing instance-specific attribute data. This new capability streamlines the synchronization between the engineering and manufacturing hubs.
The DELMIA V5R13 product portfolio brings the following major features and capabilities:
DELMIA has an interesting history that began less than four years ago in June of 2000. Dassault Systemes created DELMIA as a high-end brand for so-called digital manufacturing, and is comprised of three companies and technology sets:
portfolio are best suited for large-scale design, engineering, and manufacturing operations, such as automotive and aerospace. This large-scale suitability is probably the primary reason that in North America, the largest customers of the Dassault PLM portfolio are Boeing and DaimlerChrysler.
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-- Jeff Rowe, MCADCafe.com Contributing Editor.
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