Dassault Systemes to Acquire Gemcom

Dassault Systemes, a designer of 3D digital mock up and product lifecycle management solutions is to acquire geological modeling and simulation company Gemcom Software International for approximately $360 million. Privately-held Gemcom is a mining industry software solution provider, headquartered in Vancouver. Backers of the company include JMI Equity Fund VI, the Carlyle Group and Pala Investments Holdings Limited.

PRESS RELEASE

Dassault Systemes FR:DSY +10.26% (euronext paris:#13065)(euronext paris:DSY.PA), the 3DExperience Company, world leader in 3D design, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today announced its intent to acquire geological modeling and simulation company Gemcom Software International (Gemcom) for approximately US$360 million. Privately-held Gemcom is the world leader in mining industry software solutions, headquartered in Vancouver.
“With the acquisition of Gemcom, 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 Charles, President and CEO, Dassault Systemes. “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 harmonize products, nature and life.”
Today’s mining industry, the primary user of Gemcom’s software, is growing quickly. 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 modeling and simulation will not only enable engineers and geologists to model and visualize resources but also improve sustainable mine productivity,” said Rick Moignard, President and CEO, Gemcom. “We believe that with Dassault Systemes’ 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.” Rick 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 organization, Gemcom’s management will champion the further development of Dassault Systemes’ strategy of modeling the natural world. In addition, Gemcom’s current offices will further extend the overall geographic reach of Dassault Systemes in Australia, Africa, Canada, South America, Kazakhstan, Mongolia, Indonesia, and Russia.
Dassault Systemes and Gemcom have entered into a definitive acquisition agreement whereby Dassault Systemes 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 Systemes non-IFRS earnings and neutral to its non-IFRS operating margin.
About Gemcom Software International
When mining companies seek to increase mine productivity, they turn to Gemcom for technology and services. The Company is home to world-renowned mining solutions like GEMS, Surpac, Minex, Whittle, and InSite, and to industry thought leaders who are pushing the boundaries of what’s possible in mining. Established in 1985, Gemcom is privately held and owned by JMI Equity Fund VI, L.P., the Carlyle Group, Pala Investments Holdings Limited and has a global reach delivering comprehensive solutions in all major mining centres in more than 130 countries. 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.
About Dassault Systemes
Dassault Systemes, the 3D Experience Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systemes’ 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.