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Dassault Systèmes to Acquire Abaqus

  • Friday, 20th May 2005
  • Reading time: about 3 minutes

Dassault Systèmes is to acquire the composite design simulation software developer, Abaqus Inc, in an all-cash transaction approximating $413 million.

With the transaction, DS hope to diversify into markets beyond its existing manufacturing base, claiming that the Abaqus purchase is a significant step to reshaping the large but currently fragmented simulation software market, in which most companies still use niche applications rather than unified solutions.

According to industry analysts, the simulation software market is estimated at $2.35 billion today and is expected to grow to $4 billion in the next five years, with average growth of 12 percent per year. Many applications currently in use are internally developed programs, and current market figures do not take those applications into account, according to Dassault.

Dassault Systèmes is also confident that simulation will play an important and fundamental role in both PLM and in other related markets where realistic simulation of physical behaviour is required. Dassault Systèmes views the acquisition of Abaqus as a major move to build a comprehensive simulation strategy and organization with the Abaqus team and technology as a core component.

“With the best teams, we can transform the industry,” said Bernard Charlès, president and CEO, Dassault Systèmes. “We warmly welcome the impressive Abaqus team. Together, we will enable our customers to experience virtually what their customers will experience using their products in the real world.”

“I am delighted and enthused that Dassault Systèmes has selected Abaqus as the foundation of its strategic investment in simulation technology,” said Mark Goldstein, president and CEO, ABAQUS Inc. “As companies continue to adopt performance-centric practices as a fundamental component of product design, the role of simulation will become ever more important to the success of an enterprise. I look forward to the contribution that Abaqus technologies will bring to Dassault Systèmes’ PLM solutions while at the same time maintaining our focus on delivering industry-leading advanced finite-element solutions to the PLM market in general.”

Dassault Systèmes is simultaneously announcing the creation of Simulia as part of the transaction announcement. Simulia is the vision for an open scientific platform to allow the integration of multiple simulation applications. Simulia is part of a larger strategy for a unified, collaborative 3D environment for design, experimentation, production & automation.

“Dassault Systèmes’ acquisition of ABAQUS—the gold standard for nonlinear simulation—marks a new beginning for simulation,” said Charles Foundyller, president and CEO of Daratech, Inc. “This could be the tipping point that ushers simulation into the mainstream of PLM. For this reason, I expect Dassault Systèmes’ vision for SIMULIA to be widely accepted throughout the manufacturing industry and beyond.”

Abaqus will be a subsidiary of Dassault Systèmes and will continue to provide products, services and solutions to its customers as it does today. Abaqus will also be responsible for all MCAE technology and products within Dassault Systèmes and will assume responsibility for Dassault Systèmes’s current MCAE products and development organization.

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