Two acquisitions in a weekend — consolidation continues as engineering software suppliers broaden their reach, hunt for new customers and deepen their hold on existing clients.
We wrote on Saturday about ESI’s acquisition of CIVITEC, which will enable it to add advanced driver assistance system simulation to its overall automotive-focused suite — and to similar technologies being created for aerospace and other industries.
Today, Hexagon announced that it’s acquiring Q-DAS, maker of Statistical Process Control (SPC) solutions for industrial manufacturing. You probably know that SPC is software that helps optimize manufacturing lines –think Eli Goldratt’s The Goal, in which a factory manager went machine by machine to optimize the production line; now we have software to do that– and improve the quality of the end-product. Q-DAS’s destra, porcella, qs-STAT and solara work together to collect and visualize operational performance data, do statistical analysis of manufacturing processes, define optimization strategies and then close the loop by continuing to collect data for evaluation and corrective action.
Why does this make sense for Hexagon? Software typically has higher margins and recurring revenue, so Hexagon has been looking for solutions to snap up and pair with its hardware offerings. Adding Q-DAS to its existing metrology products enables Hexagon to offer a more complete solution, tying real-time observation via metrology to analytical tools to detect and resolve problems when they occur — before they become costly, run-ending nightmares. A more complete offering, new products to cross-sell to each installed base, higher margins — what’s not to love?
Q-DAS is based in Germany, with distributors around Europe and US subsidiary in Rochester Hills, MI. The company said in prepared remarks that it intends to maintain relationships with current technical partners and will keep the Q-DAS platforms open to them.
Terms of the deal were not announced, but Hexagon did say that Q-DAS had turnover of around €15 million in 2014 and that it expects Q-DAS t0 positively contribute to earnings.