Dassault Systèmes (Velizy-Villacoublay, France) announced that it has entered into a definitive agreement to acquire IQMS, an enterprise resource planning (ERP) software company based in Paso Robles, CA, for $425 million. With the acquisition, Dassault Systèmes extends the 3DExperience platform to small and mid-sized manufacturing companies seeking to digitally transform their business operations.
IQMS software—EnterpriseIQ and software as a service WIQ—delivers an all-in-one solution to mid-market manufacturers for managing engineering, manufacturing and business ecosystems by digitally connecting order processing, scheduling, production and shipping processes in real time. By integrating IQMS software into the cloud-based 3DExperience platform, Dassault Systèmes will provide manufacturers with an affordable system for operations that improves collaboration, manufacturing efficiency and business agility. The manufacturers, many of whom are SolidWorks users, also gain the flexibility to rapidly scale up as a business grows.
In parallel, these manufacturers can engage in new business opportunities and create value by sharing their manufacturing know-how and services with a large community of designers and engineers in Dassault Systèmes’ 3DExperience marketplace, which Dassault describes as the world’s largest factory. “We must no longer think of industry as a set of means of production but as a process of value creation,” said Bernard Charles, Vice Chairman and CEO, 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,” said Charles.
The manufacturing ERP mid-market is estimated at $5 billion, with a seven to eight percent annual growth rate through 2023, noted the release from Dassault. In the context of the industry renaissance—the convergence of a diverse and powerful collection of digital technologies that is transforming every aspect of industrial business—the world’s 250,000 small and mid-sized manufacturers must adopt and optimize new ways of doing business through digital transformation in order to innovate and accelerate their growth in an increasingly competitive global marketplace, noted Dassault Systèmes.
“For years, our business has been committed to maximizing our manufacturing customers’ success by delivering a comprehensive manufacturing ERP system built specifically for mid-sized market manufacturers and backed by extensive support and education services, which has earned us recognition in a number of industry reports and numerous business awards,” said Gary Nemmers, President & CEO, IQMS. “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.”
Dassault Systèmes will help IQMS expand its customer base by leveraging the presence in the mid-market space achieved with Dassault Systèmes’ SolidWorks applications, which are delivered and supported by the company’s Professional Solutions global partner channel.
The purchase price of IQMS will be paid in cash. Completion of the transaction is subject to customary conditions, including antitrust approval in the United States. Closing of the transaction is expected in early 2019.