4 on a Friday: DS invests in AVSimulation, Newforma acquires, more on Cadence+Numeca, Siemens’ MindSphere on Red Hat OpenShift
It’s been another busy week of earnings and other PLMish news. Here are some bits and pieces I didn’t have the time to write about more fully:
Dassault Systèmes invested €10 million for a 15% stake in AVSimulation, joining Oktal Sydac and Renault which own, respectively, 55.25% and 29.75% of the company. Who is AVSimulation? They make software and simulators for vehicle prototyping, development, validation, and AI training. Their SCANeR platform is used by more than 100 companies worldwide to simulate vehicle dynamics, driver-o\in-the-loop, sensors, and the environment. AVSimulation plans to use the added funds to accelerate its global rollout, and the companies will work together to integrate SCANeR into DS’ 3DEXPERIENCE platform.
But that’s just one of many deals this week. You know that Autodesk will acquire Innovyze and that Altair bought Flow Simulator from GE. Well, here’s another AEC deal: Newforma acquired BIM One. Who? Newforma, one of Battery Ventures’ portfolio companies, makes Project Information Management (PIM) for solutions for the AEC world — its solutions manage communication between project stakeholders. BIM One has two units, BIM One Consulting and BIM Track, a SaaS issue management solution. BIM One will remain a standalone business. Details were not announced.
Cadence announced a few weeks ago that it was acquiring Numeca. We got a bit more strategic context during Cadence’s Q4 earnings. Cadence CEO Lip Tan said the acquisition is part of “building out our multi-physics portfolio, offering best-in-class solutions and delivering superior results compared to legacy industry solutions. … We tripled our System Analysis TAM by adding Computational Fluid Dynamics (CFD) technology through the pending NUMECA acquisition, which will bring leading CFD technology and deep domain expertise.”
CFO John Wall later spoke more about how important the System Analysis business is to Cadence: “it’s doing great; bookings and revenue grew strongly in 2020. The operating margin profile is better than EDA, which allows us to invest in the business … In relation to NUMECA, [its] impact for 2021 is pretty immaterial.”
Finally, Cadence President Anirudh Devgan said Cadence’s “customers are asking for more and more system analysis, system design capabilities, and the overall simulation … CFD is one of the biggest segments in system analysis … and has lots of vertical applications – from automotive, aero, and defense to medical. I think it’s a pretty significant expansion of our platform. We are patient and this segment is profitable so we will continue building across this.” That sounds like there may be more acquisitions in the pipeline. (The Numeca deal closed on Wednesday.)
Siemens, IBM, and Red Hat announced that the MindSphere platform will be available on Red Hat OpenShift. Remember that it started out on SAP’s cloud infrastructure, then became available on Amazon AWS and Microsoft Azure? Welp, now on Red Hat’s Kubernetes (open source, container-based) architecture. IBM says this “will enable customers to run MindSphere on-premise, unlocking speed and agility in factory and plant operations, as well as through the cloud for seamless product support, updates and enterprise connectivity.” Importantly, IBM Global Business Services and Global Technology Services will offer managed services and IoT solutions to MindSphere customers. And in case you hadn’t heard, IBM bought Red Hat in 2019 for (gulp) $34 billion.
Yes, that’s only 4 — we’ll aim for 5 next week. Enjoy your weekend!