IQMS

2018: Dassault Systèmes purchased IQMS

On December 18, 2018 the Dassault Systèmes company announced the conclusion of the final agreement about acquisition of IQMS company, developer of ERP systems, for 425 million dollars. Acquisition of the Californian company IQMS will allow Dassault Systèmes to expand possibilities of the platform 3DExperience for the small and medium manufacturing enterprises aiming at digital transformation of the business processes.

The amount of purchase of IQMS will be paid by cash. The deal will be closed after accomplishment of all set conditions, including after receiving approval from antimonopoly authorities of the USA. It is expected that it will be closed at the beginning of 2019. Goldman Sachs and Mintz Levin acted as legal advisors of Dassault Systèmes; IQMS advised Harris Williams and Weil Gotshal & Manges companies.

The software of IQMS available both for local installation – EnterpriseIQ, and in the form of service – WebIQ, represents the complete solution for design management, production and business processes at manufacturing enterprises of the average size, providing a digital medium which in real time connects processing of orders, planning, production and delivery. Having integrated the solutions IQMS in the cloud version of platform 3DEXPERIENCE, Dassault Systèmes will be able to offer such producers an available system for process management which will help them to improve joint work, to increase production efficiency and flexibility of the business for successful service of customers. Producers have a flexible opportunity of fast scaling in process of growth of their business.

Along with it, producers will be able to seize the additional opportunities for business and to create additional value, offering the production know-how and services to extensive community of designers and engineers through the digital commercial platform Dassault Systèmes 3DEXPERIENCE Marketplace – large virtual factory.

It is time for us to cease to perceive the industry as a certain set of means of production, but to consider it as value creation process. It belongs not only to revolutionary startups and already created corporations, but also to hundreds of thousands of mass enterprises which turn out products which are indivisible element in creation of consumer experience and impressions. IQMS accumulated extensive knowledge in the field of production and perfectly understands needs of producers. We welcome IQMS in our command, and we work on category of business solutions which will allow to offer our product to the companies similar to what is used by SOLIDWORKS. Bernard Sharles (Bernard Charlès), vice-chairman and chief executive officer of Dassault Systèmes

The market of ERP systems for industrial enterprises of medium business is estimated at 5 billion dollars, and its annual growth during the period till 2023 will be 7-8%. In the context of the Industrial Renaissance when convergence of the most various and powerful digital technologies changes all aspects of industrial production, present 250 thousand small and medium enterprises are faced the need to implement and optimize different methods of production and business due to digital transformation to develop innovations and to try to obtain growth of the business in the conditions of more and more highly competitive global market.

Dassault Systèmes will help IQMS to expand the user base thanks to the positions and presence in the market of medium business which managed to be reached at the expense of the Dassault Systèmes SOLIDWORKS applications which sales and support it is performed through a world partner network of the company – Professional Solutions.

For December, 2018 1000 customers use the solutions IQMS, mainly from the USA which manages about 2000 production sites in 20 countries of the world and have specialization in the field of automotive industry, the industrial and medical equipment, consumer goods and also the packed mass sales items. Revenue of IQMS in 2017 made about 56 million dollars.