France’s Dassault Systèmes, the 3DExperience company, a world leader in 3D design, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today announced its intent to acquire geological modelling and simulation company Gemcom for some $360 million. Privately-held Gemcom is of course a world leader in mining industry software solutions, headquartered in Vancouver. “Coupled with our 3D Experience platform capabilities, our objective is to model and simulate our planet, improving predictability, efficiency, safety and sustainability within the natural resources industry and beyond,” said Bernard Charlès, President and CEO, Dassault Systèmes. “To support this ambitious goal, we have created a new brand, GEOVIA. Raw material provisioning and long term resource availability is a major concern for society. Today’s announcement is a significant step towards fulfilling our purpose of providing 3D experiences for imagining sustainable innovations to harmonise products, nature and life.”Dassault Systèmes notes the growth of our industry, “the primary user of Gemcom’s software. There are more than 5,500 operating mines worldwide and approximately 15,000 mining projects. The associated mining software market is experiencing strong growth, with third-party analysts estimating a double digit trend for the foreseeable future.”
“This acquisition will clearly benefit Gemcom’s customer base, bringing global support and enterprise collaboration. Advanced technologies in 3D modelling and simulation will not only enable engineers and geologists to model and visualise resources but also improve sustainable mine productivity,” said Rick Moignard, President and CEO, Gemcom. “We believe that with Dassault Systèmes’ support we will be able to address global issues for our customers as a real partner. None of our competitors can match that in this industry.” Moignard will become the CEO of the newly created GEOVIA brand, after completion of the Gemcom acquisition.
After the closing of the transaction, Gemcom’s 360 employees and management will remain in place and continue serving the mining industry. By leading the new GEOVIA organisation, Gemcom’s management will champion the further development of Dassault Systèmes’ strategy of modelling the natural world. In addition, Gemcom’s current offices will further extend the overall geographic reach of Dassault Systèmes in Australia, Africa, Canada, South America, Kazakhstan, Mongolia, Indonesia, and Russia.
Dassault Systèmes and Gemcom have entered into a definitive acquisition agreement whereby Dassault Systèmes will acquire Gemcom in an all cash transaction. The completion of the acquisition is subject to normal closing conditions, including regulatory approvals. The transaction is expected to be completed in July 2012, and Gemcom to be accretive to Dassault Systèmes non-IFRS earnings and neutral to its non-IFRS operating margin.
Gemcom is home to world-renowned mining solutions like GEMS, Surpac, Minex, Whittle, and InSite. It is privately held and owned by JMI Equity Fund, the Carlyle Group, Pala Investments Holdings and has a global reach delivering comprehensive solutions in all major mining centres in more than 130 countries. It says “every major mining company, including BHP Billiton, Codelco, De Beers, Newmont and Vale is a Gemcom client. Through a combination of organic growth and strategic acquisitions, the company has become the largest global supplier of mining software solutions.”
Dassault Systèmes provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. It says its “collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 150,000 customers of all sizes, in all industries, in more than 80 countries.”
CATIA, SolidWorks, ENOVIA, SIMULIA, DELMIA, 3D VIA, 3DSwYm, EXALEAD and Netvibes are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.
