Dassault Systèmes Acquires IQMS
With its acquisition of IQMS, Dassault Systèmes to extend the 3DEXPERIENCE platform to business operations for small and midsized manufacturers.
December 14, 2018
Dassault Systèmes has entered into a definitive agreement to acquire IQMS, a manufacturing ERP software company, for $425 million. With the acquisition of the California-based IQMS, Dassault Systèmes extends the 3DEXPERIENCE platform to small and midsized manufacturing companies seeking to digitally transform their business operations.
IQMS’s software—on premise EnterpriseIQ and software-as-a-service WebIQ—deliver a 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’s solutions into the 3DEXPERIENCE platform on the cloud, Dassault Systèmes will provide these manufacturers with a system for operations that improves collaboration, manufacturing efficiency and business agility.
“We must no longer think of industry as a set of means of production, but as a process of value creation. 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,” says Bernard Charlès, vice chairman and CEO, Dassault Systèmes. “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.”
“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,” 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.
IQMS’ solutions are used by 1,000 customers based primarily in the U.S. whose 2,000 manufacturing facilities in 20 countries produce for the automotive, industrial equipment, medical device, consumer goods and consumer packaged goods industries. Customers include Westfall Technik, KKSP Precision Machining, AMA Plastics, Donnelly Custom Manufacturing, FlowBelow Aero Inc., Global Interconnect, Inc., Jabil Packaging Solutions, Schnipke Precision Molding, Steinwall Inc., Scientific, Inc., Sturgis Molded Products, Tribar and Ventura Manufacturing Inc. IQMS’s 2017 revenue was around $56 million.
The purchase price of IQMS will be paid in cash. Completion of the transaction is subject to customary conditions precedent, including antitrust approval in the U.S. Closing of the transaction is expected in early 2019. Dassault Systèmes was advised by Goldman Sachs and Mintz Levin, and IQMS was advised by Harris Williams and Weil Gotshal & Manges.
Sources: Press materials received from the company.