Waking up early is a good thing sometimes, like this morning when a 4:32am press release (Pacific time zone) alerted me to a 7am conference call. The night before I had seen the press release about Siemens acquiring LMS.
Unlike press releases from American CAD vendors, the one from Siemens is nicely detailed:
- LMS is from Belgium and has 1,200 employees
- They make software that does mechatronic testing, and have revenues of about US$240 million a year.
- Their software tests for acoustics, vibrations, oscillations, fatigue strength, and dynamics in aircraft, vehicles, and so on.
- Purchase price is roughly US$880 million (converted from 680 million euros)
We're just waiting for the online press conference to begin... and here we go!
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LMS has 100,000 customers in 5.000 manufacturing companies. 1,200 employees in 40 offices, with head office in Leuven Belgium.
Siemens see these fits:
- Adding simulation and testing to Siemens PLM software
- LMS is growing 20% a year over the last three years
- LMS has offices in 15 industrial and emerging countries
- LMS has customers in automotive, aerospace, energy, and electronics
The company's software performs 3D simulation and structural analysis, mechatronic (mechanical-electrical) system simulation, and has testing systems for the lab and mobile (inside vehicles).
Many customers are in common between the two firms; some marque LMS customer names include Apple, BMW, and Airbus -- and Siemens itself.
Developing products is every more complex, and so this acquisition lets SolidEdge and NX users make fewer errors in their designs. "Products that used to be separate are now becoming one. These systems are becoming part of even greater meta systems."
Next generation requirements include:
- Multi-physics simulation
- Integrated testing
- Exposing data between virtual and real domains
- Accurate model-based product development using data from virtual and physical domains
"Accuracy is the key; front-loading and the virtual model is the key. We believe open standards and interfaces makes the most sense. The open ethos is at both companies."
Oops, the next slide does not show Solid Edge:
Makes mention of LMS running on archcompetitor Dassault's Catia V5; Siemens says they are committed to continuing to support V5 as a sign of their openness. Now listing all the ways that LMS is open, but the long list of acronyms are foreign to me as someone not that into the simulation industry.
I am guessing that "designed right first time by combining the virtual and real worlds" is the Siemens PLM counterslogan to the 3DEXPERIENCE tagline from Dassault Systemes. Now Siemens needs to turn "D.R.F.T.B.C.T.V.A.R.W" into a catchy one-word tag!
Ha! Making mention to UGS, the name prior to Siemens PLM System. Now they are listing all the acquisitions they have made since 2007. "For a few years we had a bit of dry spell in acquisitions, but we make the case that that dry spell is now over." Showing a chart of how acquisitions cover customers from product planning through to service and support.
Q&A
Brad Holtz: How do you plan to merge Vistagy and LMS?
A: We restructured our business a year ago with an eye to acquisitions. We anticipate integrating LMS as the testing segment.
Brad Holtz: How much revenue from from the Dassault side of LMS?
A: On the revenue side split side, we have a sizable business with V5, but not the lion's share -- 10-15% range.
John Mcrail [sp?]: I've worked with LMS for quite a while. Are there any restrictions now what can be done with Nastran, can that be put into LMS?
A: There are no restrictions, we can put Nastran anywhere; we already drive it with LMS.
Allen Barrens: What is the management structure going to be like?
A: That is the beauty of the structure we set up a year ago. We have P&Ls that coordinate with other product groups, like searching components and geometry modeling components.
Allen Barrens: What about ramifications with people like Mathworks?
A: I don't know of any partnerships that this closes. Other companies might feel there is some sort of encroachments.
Mark Halpern: I just landed in London, opened my email, and got a surprise. You are showing orchestration from TeamCenter and other apps, what is the road map? How customers can use it today?
A: This is too early for a detailed road map; it will happen after we close the deal. But we do have some examples today of LMS and TeamCenter working together. Closing is first week of January, January 3.
Mark Halpern: Simulation of software logic, like sensors. Is this available?
A: We have tools that so that already, as does LMS, and do third parties.
Tony Bearn [sp?]: What proportion LMS business is with Siemens PLM?
A: A smaller percentage than Dassault. Most of LMS business in directly in labs. We don't have an NX-based LMS product that they resell. So, a comparable number is 0%. We do market together, where the software works together. Plenty of opportunity to expand [the business].
A: There is a difference between LMS apps built on V5 platform, and LMS solutions that are connect to customers who use Dassault or Siemens. One of largest customers is GM for simulation and testing.
Tony Bearn: What are the challenges to integration TeamCenter with LMS?
A: I would not call them challenges. We have been working for a few years on how TeamCenter can manage data flowing into LMS. A lot of work has already been done. As partners, however, there are limits to what we can depend upon, like IP sharing; we have now removed those barriers.
Ralph Grabowski: There is lots of mention of TeamCenter and NX, but what about SolidEdge. Will LMS work with SolidEdge?
A: Yes. The main issue is that mechatronic simulation is something many SolidEdge users are wanting.
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Well, the questions are starting to repeat themselves somewhat. We'll keep listening, but for now this is it. One more spell check and a final click of the Publish button. Thanks for reading along.
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