Dassault Systèmes Acquires IQMS to Extend 3DEXPERIENCE Platform to Smaller Manufacturers
This week, Dassault Systèmes, announced that it has entered into an agreement to acquire California-based manufacturing ERP software company IQMS. The $425 million acquisition, to be paid in cash by early 2019, will extend the company’s popular 3DEXPERIENCE platform to business operations for small and mid-sized manufacturers looking to digitally transform their companies.
“Working together with IQMS and the teams our combined objective is to extend the 3DEXPERIENCE Platform to Business Operations for Small and Midsized Manufacturers — companies from $10 million to $250 million in revenue that run industrial operations — to serve all manufacturing users, from engineering to manufacturing operations and business users too,” Dassault Systèmes told 3DPrint.com. “IQMS, with the 3DEXPERIENCE platform, will become the business operations platform for manufacturers, supplementing its offering for the large SOLIDWORKS installed base; successful companies will leverage this digital transformation to scale-up rapidly, and gain the manufacturing efficiency and business agility they need to serve their customers.”
The Industry Renaissance is a convergence of powerful, diverse digital technologies that are collectively transforming the entirety of industrial business as we know it. Currently, the manufacturing ERP mid-market is estimated at $5 billion, with a 7-8% annual growth rate projected through 2023, and if this is to continue trending up, the 250,000 small and mid-sized manufacturers around the world will need to maintain, and increase, their growth in this competitive marketplace by adopting new digital production methods and ways of doing business. Enter IQMS and Dassault Systèmes…
“We must no longer think of industry as a set of means of production, but as a process of value creation,” explained Bernard Charlès, the Vice Chairman and CEO of Dassault Systèmes. “This applies not only to disruptive startups and established corporations, but also to the hundreds of thousands of mainstream manufacturers that produce parts integral to the development of new consumer experiences. IQMS has cultivated a deep knowledge of manufacturing and manufacturer needs. We welcome IQMS to our team as we create a new category of business solutions that expands our offer for companies similar to those using SOLIDWORKS. They can embrace the platform phenomenon and flourish in today’s Industry Renaissance.”
IQMS, which had a revenue of about $56 million in 2017, uses its software as a service WebIQ and on premise EnterpriseIQ to offer mid-market manufacturers an all-in-one solution that can help manage business, engineering, and manufacturing ecosystems by digitally connecting, in real time, the processing, scheduling, production, and shipping of orders. Its software solutions are already used by 2,000 customers, mostly in the US, for 3D printed products in the automotive, consumer goods, industrial equipment, and medical device industries.
But now, by integrating these solutions on the cloud into the 3DEXPERIENCE platform, Dassault Systèmes will be able to give these customers an affordable operations system that can help improve business agility, collaboration, and efficiency.
Brian Jones, the Founder of IQMS customer Westfall Technik, Inc., said, “At Westfall Technik, we focus on innovation, design and bringing the best manufacturing practices from around the world to all of our operations. IQMS joining forces with Dassault Systèmes is exactly the kind of innovation we like to see from our partners. IQMS’s strength in manufacturing operations and Dassault Systèmes’ strength in design and digital transformation is a great outcome for Westfall Technik. We currently use both IQMS and SOLIDWORKS in multiple locations. We definitely look forward to the new partnership.”
These customers, many of which are already SOLIDWORKS users, will be able to scale up business, and can create value and enlist new business opportunities by offering their services and expertise in 3D printing and other manufacturing methods to the community of engineers and designers in the world’s largest virtual factory: Dassault Systèmes’ 3DEXPERIENCE Marketplace.
“For years, our business has been committed to maximizing our manufacturing customers’ success by delivering a comprehensive manufacturing ERP system built specifically for the mid-market manufacturers and backed by extensive support and educational services, which has earned us recognition in a number of industry reports and numerous business awards. As part of Dassault Systèmes, we can take the next steps in providing customers with new approaches to achieving operational efficiency and effectiveness and doing so with a global reach,” said Gary Nemmers, IQMS President & CEO.
The completion of the transaction between Dassault Systèmes, which was advised by Goldman Sachs and Mintz Levin, and IQMS, advised by Harris Williams and Weil Gotshal & Manges, is subject to customary conditions precedent, including antitrust approval in the US.
When 3DPrint.com inquired about Dassault Systèmes’ 3D printing plans, the company told us:
“Over time we believe IQMS customers will be able to engage in new business opportunities and create value by supplying their manufacturing know-how and services to a large community of designers and engineers in Dassault Systèmes’ 3DEXPERIENCE Marketplace – the world’s largest virtual factory.”
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