Quickie: DS acquires No Magic for MBSE, has mixed Q3
I’m at AVEVA World Summit this week, so this has to be brief:
DS announced earnings today, and as part of that package of news said that it intends to acquire No Magic, a maker of model-based systems engineering and architecture modeling solutions for software and systems of systems.
I had never heard of No Magic before August 2017, when DS announced that it was partnering with No Magic to bring its Model-Based Systems Engineering (MBSE) solution to the 3DEXPERIENCE platform. I guess that partnership proved far more successful than envisioned, and led to today’s acquisition.
Back in August, DS’ Philippe Laufer, CEO, CATIA, said “No Magic brings excellence and deep knowledge in supporting, complying, and promoting the most widely used industry standards, and therefore best practices and template-based models for a smooth adoption of Model Based Systems Engineering. This partnership will provide systems engineers and embedded software developers with robust solutions to design, analyze, develop, test, and deliver cost-effective embedded and real-time systems and software that form today’s ‘Internet of Experiences.’”
Today’s press release had a bit more info: No Magic lists as customers a lot of DS accounts, as well as some that are new to DS — but in any case including NASA/JPL, Boeing, Lockheed Martin in aero; Ford, Renault, Honda, BMW, Nissan in auto, and many others. Interesting, this list also includes names such as J.P. Morgan and PayPal, who “rely on No Magic’s solutions including its core product, MagicDraw, part of the Cameo Suite, for business process, architecture, software and system modeling with teamwork support.” That shows unexpected help for DS, as finance is one market DS is trying to go after with other solutions, too.
No details of the transaction were disclosed, and the deal still needs the approval of regulators in the United States and Lithuania, where No Magic has offices.
As far as Q3 earnings, there’s (as always) a lot to parse. Headlines seem to be:
- Total revenue of €751.4 million, up 2% as reported and up 6% in constant currencies (cc) — but roughly 3% below expectations as services revenue was less than anticipated, and currency created unanticipated headwinds
- New license and other software revenue was clearly a highlight, up 9% as reported (up 16% cc) to €175 million
- SOLIDWORKS software revenue was up 16% in Q3 to €166 million (on a non-IFRS basis)
- CATIA, on the other hand, didn’t fare well in Q3, with revenue down 3% as reported and down 1% cc to €230 million non-IFRS
More to come, once there’s a time!