PTC Completes CoCreate Acquisition
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PTC Completes CoCreate Acquisition



PTC has completed its acquisition of CoCreate Software GmbH, a provider of product development solutions, for approximately $250 million net of cash acquired and excluding transaction fees. CoCreate, based in Sindelfingen, Germany, has 280 employees and more than 5,000 customers globally including Agilent, Canon, Molex, Fujitsu, HP, Liebherr, Matsushita Electric, NEC, Olympus, Phoenix Contact and Seiko Epson.

“The acquisition of CoCreate enables PTC to broaden its customer base, its distribution channel, and its product offering,” said C. Richard Harrison, president and chief executive officer, PTC. “Additionally, we expect the acquisition will be immediately accretive to our non-GAAP operating margins and earnings.”

Customer satisfaction has been a top priority for PTC and we expect CoCreate customers to benefit from this focus. PTC is committed to maintaining, enhancing and further developing all CoCreate products indefinitely, including OneSpace Modeling, OneSpace Drafting, OneSpace Model Manager, OneSpace Drawing Manager, OneSpace Live! and OneSpace.net. PTC will continue to offer all CoCreate solutions as stand-alone offerings. Additionally, PTC plans to integrate CoCreate solutions with the PTC Product Development System (PDS) in order to offer CoCreate customers complementary product development capabilities including engineering calculations, dynamic publishing, visualization, high-speed machining, and enterprise content and process management.

“Intermec has been a long-standing customer of both PTC and CoCreate solutions,” said Ryan White, mechanical engineering manager at Intermec, a leading supply chain technology provider. “We believe we will benefit not only by being able to purchase these solutions from one vendor, but also from the planned integration of the solutions, which should enable us to lower our total cost of ownership and ease transfer of files between tools.”

With this acquisition, PTC embraces all the accepted approaches to mechanical modeling – parametric, explicit, derived and 2D – and is the only vendor to offer all of them based upon a customer’s specific needs. Any of these modeling techniques combined with the PTC PDS offers customers a competitive advantage unmatched by any other vendor in the industry.

“PTC’s acquisition of CoCreate will provide significant value for end users,” said Allan A. Fotinopoulos, senior business product lifecycle development architect at Pitney Bowes, a global provider of mainstream technology. “We look forward to seeing how the tools will complement each other to provide added value to various product development programs at Pitney Bowes, as well as seeing integration plans to assist us in adopting a complete PLM solution in the future.”

PTC financed the acquisition and related expenses with a combination of $50 million of cash and $220 million of debt from its existing revolving credit facility. PTC expects to repay the loan within two years.

Wachovia Securities acted as exclusive financial adviser to PTC in the transaction. CoCreate was a portfolio company affiliated with HBK Capital Management.

Commentary By Jeffrey Rowe, Editor

Well, that didn’t take long. It was only a few weeks ago that we learned that CoCreate was in play and PTC was the suitor. This acquisition reinforces the consolidation of the MCAD industry that continues to march on. Is it necessarily a good or bad thing? Like most mergers and acquisitions, it depends on how you look at it. Sometimes it’s not necessarily strictly one or the other, and often proves to be a bit of both, and I’m sure that will be the situation here. With the acquisition, PTC actually acquired the CoCreate OneSpace suite consisting of the core 3D modeling application, a PDM application, and a Web-based application for collaborative project workspace.

It’s ironic that PTC, with its strong legacy in parametrics, would acquire a company whose design philosophy in some respects goes counter to PTC’s, although it does illustrate a major trend occurring in the MCAD industry that is increasingly developing non-history-based methodologies and direct geometry editing, something that CoCreate calls Dynamic Modeling.

CoCreate’s non-history-based modeling approach, is unique, but is by no means is the company alone in offering it . Model history, of course has its place, but a history-based approach to 3D modeling is not always the best way to go, and CoCreate’s customer base proves this. However, as previously mentioned, the non-history-based approach is not exclusive to CoCreate OneSpace Modeling, because Kubotek’s KeyCreator, UGS’ NX5, and IronCAD also employ it, although with slightly different methods, but the results are largely the same. A history-based approach is what most parametric modelers (such as Pro/ENGINEER) employ, but it’s not always the best method or approach, especially for changes made to a model late in the design process. This is because history-based systems use a history tree to track and replay 2D profiles and modeling steps for generating and modifying 3D geometry. The main drawback is that each step in the history is dependent upon the profile and modeling step that came before it. The further along you get in the design process, the more complicated the design and its associated history become.

On the other hand, a non-history based approach is well-suited for manufacturers that change designs late in the design process, so they are not bound by the constraints and complications that a history tree can impose. Also, a non-history-based system can make data import easier because you don’t have to worry about the overhead of dealing with a history tree from a different system. Neutral file formats, such as IGES and STEP, are for all intents and purposes, native data to CoCreate OneSpace Modeling and other non-history based MCAD applications. This eliminates the burden of legacy data originating from another system.

CoCreate is the latest in a long series of acquisitions that PTC has made over the years that have included Computervision, Mechanica,Arbortext, and Mathcad. How will CoCreate’s product line fit into the mix? That’s hard to say because there is some overlap of the products, especially on the PDM side, but things should start sorting themselves out pretty quickly.

Will the relative incompatibility of the product lines come back to haunt PTC as it has with some of its past acquisitions? It will be interesting to see which, if either, one ultimately wins – CoCreate’s dynamic, non-history-based modeling; PTC’s explicit (the term that PTC is using for dynamic modeling since the acquisition announcement), parametric technique; or an optional choice between the two. Other companies are offering the choice, so why not PTC?. In my book, this acquisition was one the biggest events to occur in the MCAD community for 2007. And, I predict that sooner rather than later, there will be as many as two to three more smaller MCAD vendors swallowed up by bigger fish, that themselves may or may not already be a player in the MCAD arena. As always, next year promises to be another year filled with unexpected twists and turns for the MCAD community.


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.

Dassault Systemes Announces Availability of 3DVIA Composer Product Line
Dassault Systemes launched its new desktop content authoring system, 3DVIA Composer V6R1. New features and packaging for 3DVIA Composer include:
  • Enhanced Animations and Views. 3DVIA Composer permits users to copy and paste among objects and to drag views in animations. These enhancements were implemented to provide advanced 3D capabilities to non-technical desktop users.
  • Support of ellipses in 2D vector graphics. 3DVIA Composer can automatically generate technical illustrations from 3D data as part of an integrated desktop system. With these enhancements, technical illustrators can produce more accurate illustrations
  • Innovative rendering capabilities. 3DVIA Composer offers the ability to render individual objects. Also included are new lighting objects. An innovative new capability called Layered Rendering allows desktop users to build up rendering of parts and assemblies to achieve the most appropriate visual representation of a procedure or process.
  • Improved performance for large assemblies. 3DVIA Composer's performance, a benefit of its XML-based architecture, is enhanced with new load-on-demand capabilities and support for interactively browsing large assemblies.

    STAR-CD V4.04: The Power of Integration
    CD-adapco today announced the release of STAR-CD V4.04 that introduces new capabilities, including:
  • A new version of pro-STAR that utilizes an advanced GUI with improvements in usability and speed.
  • Improved capabilities for melting and solidification, which is now integrated with the stress analysis capability, allowing the prediction of residual stresses in the solidified phase.
  • The introduction of new physical modeling capabilities, including liquid film stripping.
  • A mesh morphing capability that simplifies moving mesh simulations, fluid-structure-interaction calculations and optimization studies.
  • Greater reliability and improved solver speed, resulting in significant decreases in run time.
  • Integration of the latest STAR-CCM+ meshing technology, including the surface wrapper and polyhedral mesher.

    3D3 Solutions Adds 3D Scan Data Processing Package
    3D3 Solutions announced the addition of Leios Mesh to its 3D scan processing product line. Previously only available as part of a packaged offering, Leios Mesh is now available as a stand lone product. Leios Mesh processes 3D scan data developed by Italian company, EGS. The software takes raw 3D data from 3D scanners or touch probes and transforms the data into a 3D model for use in downstream applications. Leios Mesh is an application for 3D reverse engineering and surface reconstruction. Key features of Leios Mesh include:
  • Point cloud processing and cleanup
  • Mesh alignment and stitching
  • Mesh repair and editing
  • Inspection and measurement
  • Solids and surface creation

    Geometric releases version 2.1 of GeomCaliper for Pro/ENGINEER
    Geometric Ltd. announced version 2.1 of GeomCaliper for Pro/ENGINEER, focusing on usability and performance enhancement related features. The major enhancements in this release of GeomCaliper for Pro/ENGINEER include:
  • Enhanced Reporting: Reporting mechanism for thickness analysis results can capture multiple critical regions along with their static image snapshots in one report now.
  • Customizable color band: Color band displayed with thickness analysis results can now be customized to specify user defined intervals including range and color for each interval.
  • Contact Distance: In sphere method for thickness analysis, the user can opt to view contact distance between touch points rather than diameter of sphere.
  • Enhancements in Critical Region Analysis tool: Enhancements in critical region analysis tool include the ability to quickly locate critical regions outside of allowed thickness range, setting default options to view region or clipped section at pre-defined angles, turning animation on-off during critical region analysis, and defining or modifying parameters like status, color, review comments on multiple regions at same time.
  • Improvements in Performance -- computation time reduced by up to 30%, and significant improvement in visualization performance resulting in 150% improvement in FPS rate. Bigger and complex models are now processed much faster.

    ESI Group Joins Dassault Systemes' PLM MarketPlace
    ESI Group, a supplier of simulation software for prototyping and manufacturing processes, announced its acceptance to the PLM MarketPlace after successfully completing the technical and business requirements. Dassault Systèmes’ PLM MarketPlace is an online community that connects software development and business partners. Through PLM Marketplace, resellers can search and find complementary solutions provided by Dassault Systèmes software partner community. ESI Group provides a broad range of applications for CATIA users. In the composites field, PAM-QUIKFORM for CATIA enables composites designers to get fast feasibility assessment of manufacturability inside the CATIA Composites application. PAM-RTM for CATIA offers a unique injection simulation software for composites manufacturing integrated in CATIA. ESI Group’s portfolio of applications also includes two metal forming solutions, part feasibility check and rapid die creation with PAM-TFA for CATIA and PAM-DIEMAKER for CATIA.

    Jeffrey Rowe is the editor of MCADCafé and MCAD Weekly Review. He can be reached at Email Contact or 408.850.9230.

    This Week

    Lead Story

    PTC Completes Acquisition Of CoCreate

    Product and Company News

    Dassault Systemes Involved With Launching Unique Educational Opportunity
    Wessex Water Pumps Innovation into Equipment Designs With SolidWorks
    ITP Propels PLM Strategy with PTC Windchill
    3D Systems Responds to EnvisionTEC's Press Release Concerning 3D Systems' V-Flash Desktop Modeler
    Engineering Programs Increasingly Building Careers with SolidWorks Education Edition
    Visual Numerics Announces Embeddable Analytics Strategy
    PTC Named First Collaboration Sponsor for First Robotics Competition (FRC)
    Geometric Technologies releases CAMWorks 2008
    Acu-Cast Technologies Joins 3D Systems Preferred Service Provider Network
    ESI Group Announces CFD-ACE+ V2008.0 Software for Advanced CFD and Multiphysics Solutions
    Moldflow Announces the Release of Moldflow Structural Alliance 1.1
    SpaceClaim Announces New Perpetual Licensing Plan plus Promotional Pricing
    ALGOR V21 Upgrades Entire FEA Spectrum
    4th Annual 3D Collaboration & Interoperability 2008 Conference Announced
    hyperMILL V9.7 Integrated in SolidWorks and Autodesk Inventor 2008
    Flomerics Releases Version 8.1 of EFD Analysis Software
    New SolidWorks 2008 Keyboard Shortcuts Card
    SoftinWay Announces New Bundle of AxSTREAM Educational Version
    Invention Machine Releases Second Podcast Episode on Sustainable Innovation
    VW Optimizes Ergonomic Integrity with Dassault Systemes DELMIA Human
    Cyclone Power Technologies Throttles up 'Green' Engine Design with SolidWorks 3D CAD Software
    IRONCAD Version 10 Uses HOOPS Technology to Deliver Enhanced Graphical Performance
    EDS Technologies Presents Seminar on Modeling and 3D Visual Simulation
    ANSYS Announces Distribution Extension with Livermore Software Technology Corporation (LSTC)
    Moldflow Announces The Release Of Moldflow Structural Alliance 1.1
    i get it Featuring New Training Courses at Autodesk University 2007
    Invention Machine Releases Podcast on Sustainable Innovation
    Delcam Software Helps Surgeon Provide Alternatives
    Moldflow and Missler Software Announce Technology Integration and Reseller Agreement
    Research and Markets: "SolidWorks For Dummies, 2nd Edition" Will Help You Get Up and Running Quickly on the Leading 3D Technical Drawing Software

  • Geometric Releases GeomCaliper V 2.1 for CATIA V5
    Delcam's OMV Halves Press Tool Times
    Moldflow Announces the Release of Moldflow Plastics Advisers 8.1
    ModernTech Mechanical Selects SolidProfessor Training and Support Services
    Apollo Tyres Gains Competitive Edge with Dassault Systemes' SIMULIA
    Metris Releases 7-Axis Articulated Arm
    CMM Market Flies High With Demand From Aerospace And Defense Industries
    CADDIT Releases Free progeCAD Smart
    Michael Kors, Leading Fashion Designer, Selects Dassault Systemes' PLM Solution to Manage Growth
    New --- OPTIMUS 5.3, Optimization Software from Noesis Solutions.
    Delcam Puts Free CAD Training on iTunes
    Introducing Doctor Walt’s KEYCREATOR 7 Workbook
    RedEye RPM to Launch New Division at Euromold

    Related MCAD News

    myVR Software V2 Released
    IBM To Repurchase up to $1 Billion of Stock
    Corel Partners with ConceptShare to Deliver New Online Collaboration Tool
    Report: IBM Is Number One Server Vendor Worldwide in Q3 2007
    Study Questions Manufacturing IT Decision Makers on Their Desktop Management Investment Plans
    Delcam's Launches Entry-Level Version of ArtCAM
    SAMCEF for Power Lines and Substations
    E-Learning Course: Change Management Simulation - Experience Change

    Industry Events

    Coming in January: SolidWorks World 2008, the 10th Anniversary Edition
    CPDA Announces PLM Road Map 2008
    4th Annual 3D Collaboration & Interoperability 2008 Conference CALL FOR SPEAKERS
    Imug08 - International Moldflow User Group Meeting
    GibbsCAM Demonstrated at Upcoming Mazak Open House
    TopSolid'Mold & TopSolid'Cam on display at EuroMold
    Moldflow’s 2008 International User Group Conference To Be Held in Detroit, Michigan
    OPEN MIND to Debut hyperMILL in Solidworks at PRI
    The CMSC Society Announces "Call for Papers" for the 2008 Coordinate Metrology Systems Conference
    Delcam to show aerospace/automotive machining at Southern Manufacturing
    TopSolid User Conference in Japan
    SoftInWay Announces 2008 Schedule for Turbomachinery Flow Path Design and Optimization Courses
    ModuleWorks to launch new Simulation product at EuroMold
    INUS Technology to Present Latest Releases at EUROMOLD 2007
    CAD Schroer Tour of PTC World Events Continues
    Basic FEMAP & NEINastran Advanced Dyanmic Analysis Training Class - Jan 14 - 18th, 2008
    Delcam Shows Moldmaking CADCAM in India
    Arena Solutions Webinar: How to Avoid New Product Introduction Delays

    Corporate Newsletters

    ACSON Corporate Newsletter
    NEiNewsletter - Noran Engineering, Inc. - December 2007
    TopSolid' Newsletter Issue #25

     

     

     

     

     

     

     


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