May 15, 2006
Dassault Systemes Completes MatrixOne Acquisition
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Jeff Rowe - Managing Editor

by Jeff Rowe - Contributing Editor
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Dassault Systemes announced it has completed the acquisition of MatrixOne Inc., a leading provider of collaborative PLM solutions for the value chain. The all cash purchase price was $410 million in the aggregate, before reflecting cash balances and estimated tax benefits.

"MatrixOne brings key assets to DS: an innovative and knowledgeable global team, and powerful business process technology that will accelerate our ability to serve our customers with the most comprehensive collaborative PLM solution on the marketplace," said Bernard Charles, president and CEO, Dassault Systemes. "The merger broadens our industry coverage, particularly in the high-tech, semiconductor, apparel and consumer goods areas, where unique PLM requirements and complex business issues demand focused, world-class solutions. DS is pleased to welcome the MatrixOne employees, customers and partners into the DS family."

Today's companies need to create, produce and rapidly deliver products successfully in increasingly demanding markets, accelerating the adoption of PLM. This trend demonstrates the competitive advantage gained from innovative collaborative business processes, which can result in faster time-to-market and improvements in top-line revenue and bottom-line profitability. The acquisition of MatrixOne reinforces DS' ability to address the needs of this large PLM market, building on its almost 9,000 current successful customer implementations in collaborative PDM software and services.

The new PLM Collaborative Environment portfolio, which will take the ENOVIA brand name, will address customers' requirements across the full spectrum of product and business processes, from small-scale teams to extended enterprises with many thousands of users. ENOVIA offers a new level of collaboration, from the most simple to highly engineered complex products and is now poised to address a broad range of industry needs:
  • ENOVIA VPLM - 3D Collaborative Virtual Product Lifecycle Management of highly complex product, resource and manufacturing processes in medium and large extended enterprises
  • ENOVIA MatrixOne - Collaborative Product Development business processes for enterprises across a wide range of industries, including Synchronicity for Semiconductor Design Data Management
  • ENOVIA SmarTeam - Collaborative Product Data Management for small and mid-sized enterprises, engineering departments of larger organizations, and across supply chains.
  • All three product lines have world-class executive leadership and will report to Joel Lemke, CEO of ENOVIA. "Combining our PLM product portfolios brings ENOVIA unrivaled breadth and depth of business process coverage, new levels of business collaboration, accelerated PLM deployments, and secure PLM investments," noted Mr. Lemke. "Today, ENOVIA's collaborative capabilities not only include large OEMs and their network of global suppliers, but also extend the benefits of PLM to non-engineering communities across a broad range of industries."

    "The acquisition of MatrixOne by Dassault Systemes is really a good opportunity to improve our consulting and services business on Dassault Systemes' technology by extending the coverage of the PLM value chain," said Rory Read, Managing Partner, Global Industrial Sector, IBM Global Business Services. "We will be able to leverage both our strong existing partnership with DS and our experience of MatrixOne projects. This acquisition brings additional value to the Dassault Systemes portfolio, particularly for our clients in the electronic industry. DS will be ideally positioned to offer a comprehensive range of PLM software to this industry."

    "We are delighted with Dassault Systemes' acquisition of MatrixOne," said Patrick McGoldrick, CEO, Tata Technologies Group. "Tata and MatrixOne have delivered world-class PLM solutions for many years. The Merger allows us to deliver significant value via the solution strengths of MatrixOne and the global system integration capabilities of INCAT, the Tata PLM Brand."

    "Capgemini is looking forward to expanding our existing MatrixOne relationship into the Dassault Systemes ecosystem to provide stronger collaborative PLM solutions to an expanded customer base," noted Ed Stark, vice-president, Capgemini LLC.

    With this announcement, the consolidation of the PLM industry through acquisition marches on - another case of one heavy hitter absorbing another - MatrixOne now becomes ENOVIA MatrixOne. MatrixOne is a complex and comprehensive platform or environment for collaborative PLM that is now part and parcel of another complex and comprehensive entity, Dassault's ENOVIA. There seems to be a bit of duplication involved with the acquisition, but there also seems to be enough distinction that it makes sense, at least at this stage. It also seems as though the acquisition was made more for purposes of market segment expansion than pure technology, but I could certainly be proven wrong there.

    Since its inception, Dassault's ENOVIA has attempted to integrate virtual product modeling, lifecycle management, and decision support for companies that manufacture complex products. The ENOVIA products are intended to help companies developing large engineering-intensive products to manage the product lifecycle in a unified environment. In theory, all parties involved with a product's lifecycle can access, share, and manage product information.

    MatrixOne has also been billed as a collaborative PLM environment that consists of three main components:
  • Matrix PLM Platform that serves as the backbone for the Matrix environment and is the underlying engine for Matrix10's PLM business process applications, modeling capabilities, and third-party system integrations discussed below.
  • Business Process/Lifecycle Applications that are interoperable for the roles involved in product planning, product development, product sourcing, manufacturing, and compliance.
  • Enterprise Integrations that provide data sharing between Matrix and third-party enterprise MCAD, EDA, and ERP applications.
  • One of the side results of this acquisition might be to evolve and redefine what PLM actually is. Will it cause competitors to take stock and reevaluate their PLM offerings and strategies? Probably. Will it benefit ENOVIA and/or MatrixOne customers? Possibly. Will it prove to be a wise move for Dassault and the PLM industry as a whole? That remains to be seen. The biggest challenge for Dassault surrounding the acquisition may be how truly convey what its implications are, the direction it's heading, and why it's compelling. All told, a pretty tall order.

    The Week's Top 5

    At MCADCafé we track many things, including the stories that have attracted the most interest from our subscribers. Below are the five news items that were the most viewed during last week.

    Arena Solutions announced that its first fiscal quarter of 2006 was the most successful in the company's history. This milestone represents an average quarter-over-quarter growth of 40%. Delivered as a secure, web-based Internet service, Arena PLM reduces the cost and complexity to deploy PLM. In addition, Arena PLM features an AJAX-based user interface. By lowering the barriers to adoption and providing a simpler, yet powerful customer experience, Arena Solutions allows small- to mid-size manufacturers to more effectively compete with their larger counterparts.

    UGS Corp. announced the "SAP Certified Integration" designation has been added to the latest release of its Teamcenter Gateway solution. UGS partner TESIS PLMware, the developer of Teamcenter Gateway, received SAP certification for the software that links Teamcenter to mySAP Business Suite solution, one of the manufacturing industry's most widely used solutions for enterprise resource management (ERP). The collaborative link between Teamcenter PLM and mySAP ERP was developed on SAP Netweaver which is the integration platform for Independent Software Vendors (ISV) to integrate their applications.

    Corel Corp. introduced Corel DESIGNER Professional 12. Built on Corel DESIGNER Technical Suite 12, Corel DESIGNER Professional 12 offers native 3D-import capabilities from Spatial Corp. to support leading CAD/CAM packages including IGES, Pro/ENGINEER, SAT, CATIA 4, and CATIA 5. Corel DESIGNER Professional 12 provides a workflow for technical illustrators who need to import 3D CAD files for creating 2D vector and bitmap drawings. The suite also delivers the extensive file compatibility with more than 75 import and export filters including CGM, PDF, EPS, JPG, TIF, and SVG. In addition to the new 3D-import capabilities, the suite includes Corel DESIGNER 12 for precise technical illustration
    and layout; Corel PHOTO-PAINT 12 for professional image editing; CorelTRACE 12 to convert bitmaps and legacy paper documents into vector graphics; and Corel CAPTURE 12 to create screen captures, an integral component of many technical documents.

    CAD Schroer Group (CSG), announced that its free personal use version of its MEDUSA4 CAD software is now available on Linux. MEDUSA4 Personal for Linux offers the full functionality available in the MEDUSA4 Advanced Parametrics package, including basic 3D (sheet-based modeling), parametrics, and all of MEDUSA's drafting tools and functionality, such as SMART Edit ("parametrics on demand"), advanced Design Objects, hidden line removal, and drilling table tolerancing. MEDUSA4 Personal is expressly restricted to non-commercial use. Small technical differences from the commercial version include a different sheet format, watermarked print
    output, and the ability to import from, but not export to DXF/DWG format. Also, the commercial version is customizable, while MEDUSA4 Personal is not.

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    -- Jeff Rowe, Contributing Editor.


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