Dassault Systemes Signs Definitive Agreement to Acquire a Majority Interest in Smart Solutions Ltd.
Dassault Systemes and Smart Solutions Ltd. joins forces
to completely address the TeamPDM and PDMII market segments
Dassault Systemes (Nasdaq: DASTY) and Smart Solutions Ltd. today announced the signing of a definitive agreement whereby the privately-held Smart Solutions Ltd. will be acquired by Dassault Systemes through a cash transaction. Smart Solutions is a pioneer in developing Web based Windows(TM) centric Product Data Management (PDM) and Workflow solutions to help small and medium size businesses to manage their product information and product design process. Smart Solutions has become the leading provider for the "TeamPDM" market. This is a logical complement to the current Dassault Systemes / IBM strategic partnership around the ENOVIA brand, delivering solutions to address the needs of large enterprises and their supplier chain, the PDM II market space. Together, Smart Solutions Ltd. and ENOVIA Corp. will offer dedicated solutions for both market segments, thus meeting the needs of customers at all levels of product and process complexity.
Smart Solutions Ltd. is an Israeli-based corporation with headquarters in Tel-Aviv. Upon completion of the transaction, Smart Solutions Ltd. will continue to operate as a separate entity maintaining its own identity and expanding its product development, marketing, sales, distribution and support organizations. As part of Smart Solutions' partner program, the company will develop and enhance its "multi-CAD" and application integration strategy. Original founders, Avinoam Nowogrodski and Avichay Nissenbaum, will continue to lead the company and remain shareholders.
Smart Solutions Ltd., founded in 1995, is the leader and one of the fastest-growing companies in the PDM market with over 500 customers. Smart Solutions Ltd. offers team oriented, off-the-shelf yet totally customizable, Windows(TM) and Web centric PDM and Workflow solutions. Smart Solutions sells through a worldwide network of over 150 Value Added Resellers, supported by international subsidiaries and offices. Smart Solutions best in class products combined with an efficient, trained indirect channel that provides local support, enable SmarTeam(TM) customers to rapidly deploy the SmarTeam solution through easy customization and a "bottom-up" scalable approach.
"The members of the Smart Solutions team are excited about continuing our successful growth in combination with Dassault Systemes," said Avinoam Nowogrodski, CEO of Smart Solutions Ltd. "Our companies share a vision of bringing PDM to every corporate desktop, and together we are in a unique position to address all customer profiles. Dassault Systemes' endorsement benefits our customers and will foster the accelerated deployment of Smart Solutions Ltd. worldwide."
"With this transaction, Dassault Systemes clearly demonstrates its innovative and open approach to reach new markets and provide value to our customers in every single segment of the PDM industry. Smart Solutions is clearly the leader to provide affordable and easy to use TeamPDM solutions. Their motivated employee team and focused distribution channel will allow Dassault Systemes to serve customers of this rapidly growing market segment," said Bernard Charles, President of Dassault Systemes.
Dassault Systemes will take an equity interest in excess of 75% based upon a $35 million valuation for Smart Solutions' technology and customer reach. The acquisition will be recorded as a purchase. Excluding acquisition costs and amortization of acquired intangible assets, the deal will be slightly dilutive on 1999 EPS. Its completion is subject to normal regulatory approval.
Thibault de Tersant, Dassault Systemes' Executive Vice President, Finance and Administration, stated, "This acquisition is a very important milestone in the strategy of increasing our available market. It will allow a better coverage of customer requirements by our sales channels and represents a significant growth potential."
Dassault Systemes S.A. (http://www.dsweb.com.) is a leading software developer for the CAD/CAM/CAE/PDM II market, providing users with solutions for their product development needs. CATIA-CADAM Solutions and DENEB Solutions enable total simulation of the creation of a product. SolidWorks, a wholly-owned subsidiary, offers design-oriented, software solutions based on Windows(TM). With Java-based CATweb e-business tools, everyone can exploit engineering data over the web. ENOVIA PDM II Solutions deliver a new multi-CAD collaborative and innovative environment for the virtual product and process modeling and management across the extended enterprise. The company's customer base comprises over 13,000 CATIA-CADAM and 9,500 SolidWorks customers.
Smart Solutions Ltd. (http://www.smarteam.com.), founded in 1995, develops Windows(TM) and Web based Product Data Management (PDM) systems and workflow solutions for customers in the engineering, manufacturing, power, process and industrial market segments. Smart Solutions' products are sold and supported worldwide via a network of seven international offices and over 150 authorized resellers.
SmarTeam is a trademark of Smart Solutions Ltd. CATIA and ENOVIA is a registered trademark of Dassault Systemes SA.
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|Date:||Apr 19, 1999|
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