Vero Software, the UK-based provider of CAD/CAM and CAE solutions for the tooling industry, today announced that it is merging with Planit Holdings, a developer of CAD/CAM software for the production engineering, sheet metal, metal fabrication and woodworking sectors whose brands include Edgecam, Alphacam, Cabinet Vision, CabnetWare, Javelin and Radan.
Vero cites CIMdata research to say that this combination creates “the world’s leading CAM specialist, and third largest CADCAM vendor – only behind Dassault Systèmes and Siemens PLM”. Since my research doesn’t focus on CAM, I can’t comment on this other than to say that it is not surprising that niche vendors find that they must combine in order to succeed against the reach of a broad supplier like DS or Siemens.
The CEO of Vero, Richard Smith, said in a press release that this newly expanded offering will accelerate the company’s growth. “With greater critical mass we will be able to continue to provide excellent service and support to both existing and new customers. We fully recognize the importance of product branding and customer loyalty, and therefore, it is important to emphasize that we will continue to invest in all of the products. We will move forward together with the expertise, knowledge and resources necessary to deliver even higher levels of productivity to our customers."
The deal was financed by Battery Ventures, a Boston-based private equity firm with $4 billion under management. Planit had been owned by August Equity, a London-based private equity investment firm with approximately £300 million of capital under management. Financial details of the merger were not disclosed, though it is interesting to note the global nature of the deal.