Quickie: PTC acquires Onshape
PTC and Onshape just announced that they’re teaming up to, as Onshape founder Jon Hirschtick puts it “broaden the scope of what we deliver to [customers[, and broaden our reach in the market to bring Onshape to more users even faster.”
In a letter to customers, Mr. Hirschtick said that his top priority remains “to preserve and enhance what you and I love about Onshape. Our beloved Onshape team remains the same. Our product strategy and roadmap remains the same, with a continued sharp focus on our customer needs. You will still experience the same level of responsive customer support that you have come to expect from us … PTC shares our bold vision of a cloud/SaaS future for our industry. It’s rare to find this kind of bold vision in a company the size of PTC, and even rarer to see such a large company take such bold action to commit to that vision. This is why I’m excited to be partnering with PTC CEO Jim Heppelmann and the rest of the 6,000 PTC employees to expand the scope and speed of what we are doing with Onshape.”
For its part, PTC said that it is paying approximately $470 million, net of cash acquired, for Onshape “to accelerate PTC’s ability to attract new customers with a SaaS-based product offering and position the company to capitalize on the inevitable industry transition to SaaS”.
You may recall that PTC has been transitioning its customers to subscriptions, so this plays into its strategy to (like everyone else) become less reliant on big-hit sales. PTC CEO Jim Hepplemann said in a press release that “we see small and medium-sized CAD customers in the high-growth part of the CAD market shifting their interest toward SaaS delivery models, and we expect interest from larger customers to grow over time. The acquisition of Onshape complements our on-premises business with the industry’s only proven, scalable pure SaaS platform, which we expect will open new CAD and PLM growth opportunities while positioning PTC to be the leader as the market transitions toward the SaaS model.”
The deal still needs to get regulatory approval and is expected to be completed in November 2019.
For those of you keeping track, Onshape has never disclosed revenue figures but we do know that it raised about $150 million in financing since its founding in 2012.
Much much more on this soon …