Suresnes, France, March 30, 2001 — Dassault Systemes (Euronext Paris # 13065, DSY.PA, Nasdaq : DASTY) today announced the signing of an agreement whereby Dassault Systemes (DS) plans to acquire the privately held SRAC through a stock transaction for the amount of $22 Million (USD). SRAC becomes a wholly owned subsidiary of DS, operating under the SRAC name. Barbara Guerra, formerly vice president of SRAC, will be CEO of the new subsidiary.
This acquisition positions DS as the pre-eminent supplier of CAE and CAD integrated design analysis software in both the process and design-centric markets. SRAC's COSMOS/™ product line, tailored to the design centric market will perfectly complement the high end CATIA Version 5 Analysis solutions for the process centric market. These two leading solutions will redefine customer expectations for front-end analysis solutions and set new standards for CAE industry leadership.
Through its open multi-CAD integration strategy, SRAC will continue to enhance its native Windows®-based COSMOS/™ product line, delivering affordable 3D Analysis to the mainstream design-centric CAD customers including users of SolidWorks®, Autodesk Inventor™, and Solid Edge™. The strength of the DS Group will maximize SRAC’s full potential for ongoing product innovation and new business development. SRAC will continue to deliver COSMOS/ products through its existing channel of over 370 value-added resellers worldwide.
In addition to expanding DS' leadership in the design-centric market, this new acquisition will allow DS to increase its sales of CATIA Version 5 Analysis solutions, by adding key analysis expertise and strengthening the long and successful DS-IBM partnership. SRAC’s dedicated CAE team will bring customer best practices and implementation know-how to assist the IBM PLM organization and its worldwide network of CATIA® Business Partners in the sales and support of the CATIA Version 5 Analysis solutions for the process centric market. CATIA customers will now benefit from SRAC’s 15 years of experience and expertise in supporting analysis products and processes.
"SRAC is another step in our strategy to have 3D everywhere, anytime and for everyone. " said Bernard Charles, President, Dassault Systemes S.A. "Analysis and Simulation are strategic throughout Product Lifecycle Management and for all mainstream design-centric activities, and we want to expand 3D Analysis as a key communication and decision support means"
"Virtual simulation is emerging as a strategic solution that dramatically shortens time-to-market by reducing physical prototyping," said Bruce Jenkins, executive vice president of Daratech, Inc. (Cambridge, MA, USA). "Dassault Systemes' acquisition of SRAC has the potential to sharply accelerate adoption of this technology, particularly in up-front design, where it has the greatest impact on product quality and cost."
"SRAC is a strategic member of our Mechanical Application Initiative partner program, providing our customers with outstanding, integrated analysis software for Autodesk Inventor and Mechanical Desktop," said Robert Kross, vice president of the Manufacturing Division at Autodesk. "DS will give SRAC the additional management and technical strength needed to accelerate development of competitive offerings that benefit our customers. We look forward to continuing our relationship to provide customers with focused solutions."
The acquisition is subject to DS stockholder approval. DS expects the acquisition to be accretive to earnings within 12 months.
- CATIA is registered in the US Patent and Trade Mark Office by Dassault Systemes.
COSMOS/M, COSMOS/DesignSTAR, and COSMOS/Works are trademarks of SRAC.
All other company product or service names mentioned may be trademarks or service marks of others.
Statements above that are not historical facts, including but not limited to certain statements made regarding the Company’s outlook, are statements of future expectations and other forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended) that are based on management's current views and assumptions and that involve known and unknown risks and uncertainties that could cause actual results or performances to differ materially from those in such statements due to, among other factors: (i) market demand for our products and services, (ii) new product developments and technological changes, (iii) global economic conditions, (iv) our ability to recruit and retain skilled personnel, and (v) currency fluctuations. Unfavorable changes in any of the above or other factors listed under “Risk Factors” from time to time in the Company’s SEC reports including the Form 20F for the year ended December 31, 1999 which was filed with the SEC on June 30th 2000, could materially affect the Company.