There’s a lot of acquisition news coming out of the PLMish universe, so let’s catch up a bit while we wait for earnings to really heat up later this week.
PTC last week announced that it acquired Enigma, a company whose products aggregate and deliver technical content for aftermarket services. Terms of the deal were not announced, but we think it’s likely a small company since PTC is required to disclose deals that would have a meaningful effect on revenue and profit. Engima is based in Israel and in Burlington, MA — just up Route 128 from PTC’s HQ.
Enigma makes InService EPC (Electronic Parts Catalog), a web application that enables manufacturers to publish and distribute parts and service information to their dealer/distributor networks. InService MRO (Maintenance Repair and Overhaul) is a publishing and delivery solution that enables owners and operators of assets like aircraft, power plants and rail networks to manage the distribution of service and parts information to maintenance and engineering teams. Finally, Enigma 3C is a web-native platform and analytical applications used to process and deliver technical content in an aftermarket parts and maintenance environment.
The big deal? Enigma doesn’t care where the data was created — customers can collect, digitize and serve out technical content that comes from a wide variety of formats, not just PTC’s, to get the right information out in a useful format to the technician in the field.
We should learn more about Enigma’s impact on PTC’s revenue and profitability when PTC announces its June quarter results later this week.
PTC isn’t the only acquisitive company in our world. Back in May, Dassault Systèmes announced that it was acquiring Apriso to “clos[e] the loop between design, engineering, manufacturing and consumer experience”. Earlier this month, that acquisition closed at a final price of $205 million (roughly 4x 2012 revenue of $50 million). As previously announced, Apriso will become part of the DELMIA brand.
DELMIA, Siemens PLM’s Tecnomatix and Mentor’s Valor, among others, are interesting beasts; they are digital manufacturing solutions that can be used to fine-tune an entire manufacturing process, much as suggested in Eli Goldratt’s The Goal. The idea of linking manufacturing with product design, creating a product that can be efficiently manufactured and whose quality can be controlled seems like such a no-brainer, yet neither DELMIA nor Tecnomatix have been blow-out growth stories over the last couple of years. It will be interesting to see how the addition of Apriso jump-starts interest in DELMIA, and whether there is any cross-pollination into Tecnomatix and other competitor products.
We may hear more about DS’ plans for Apriso on its earnings call on Thursday.
Buying isn’t the only activity in our world — there’s selling going on, too. Hexagon started out as a Swedish industrial conglomerate that held assets as diverse as a food processing plant (fish, I think), a contract metals manufacturer and manufacturers of valves, wireless antennas and pressure vessels, among a lot of other stuff, too. While it’s been making a lot of news buying companies like Brown & Sharpe, Leica Geosystems and Intergraph, Hexagon has also been quietly selling off the assets that no longer fit the vision of building a software, hardware and services company focused on design, measurement and visualization
One such asset was EBP Olofström AB, which manufactures car body components for several European automotive manufacturers. EBP (and its sister companies in Hexagon’s “Other” category) are rarely mentioned, but we learned in the announcement of its sale that it had revenue of about €23 million in 2012, less than 1% of Hexagon’s total sales for the year.
There’s only one other outlier left, SwePart Transmission, which manufactures custom gearbox housings, precision-ground gears and other parts for industrial and automotive applications. SwePart had revenue of about €40 million in 2012 — and is likely to be next on the chopping block. Interested?