Two trends that characterize today’s PLM industry center around Industry 4.0 and Simulation & Analysis (S&A). The reasons for why these areas show powerful growth curves are similar; both are expressions of the disruptive power brought by the digitization of industrial processes. This, in turn, is a reflection of dramatic changes in how the products are defined and designed.

These market forces are pushing providers of PLM solutions to broaden their offerings to encompass things like generative design, IoT and digital twins.

This week, two pieces of news in the Dassault sphere reflect these changes:

• “Value Solution Partner” Addnode Group's PLM division, which counts TechniaTranscat and Intrinsys as subsidiaries, bought two S&A companies: British SSA and Dutch Simuleon.
• SOLIDWORKS’ largest Nordic and Baltic retailer, PLM Group, has been acquired by the Swedish machinery and technology trading company LMT Group, paving the way for the creation of integrated platforms around PLM and factory automation.

Technology services company, LMT Group, is set to acquire Dassault SOLIDWORKS’ largest Nordic partner, PLM Group. LMT owns Ravema—with operations in Sweden, Norway and Finland—and “Din Maskin” with operations in Sweden and Norway. LMT Group has around 2,300 employees at six production sites, and 20 sales and services organizations on three continents. It had revenue of 400 million euros during its 2017 business year.

Together with PLM Group, LMT Group/Ravema plans to create a solid platform for the company's future competitiveness.

"The acquisition is in line with our strategy of investing in industry, where technology issues and related skills are at the core, it also gives us opportunities for new product and market areas," says Jörgen Fredsson, CEO of LMT Group.

PLM Group is Dassault Systèmes SOLIDWORKS’ largest partner in northern Europe with over 5,000 industrial customers in the Nordic and Baltic countries. Since 2014, PLM Group has also been a reseller of 3D printers from 3D Systems, HP and MarkForged.

From CAD Resellers to PLM Consultants

PLM Group has revenue of roughly 35 million euros, 136 employees and over 20 years of experience helping its customers to produce products more cost-effectively. The company's Swedish branch, originally founded by Martin Poulsen, has in recent years expanded its expertise in the PLM area. Denmark’s Jess Frandsen has also made a significant contribution to building this originally Swedish CAD company into a Nordic and Baltic top-line player in the PLM landscape in recent years, under CEO Jan Lundström's leadership.

The business originally revolved around the resale of SOLIDWORKS under the name MP Engineering. Today, it has grown into one of the largest PLM groups in the Nordic region, with not only 3D CAD in its toolkit, but also a number of services related to industrial IT support. Among other things, they are also a reseller of Dassault's PLM platform, 3DEXPERIENCE.

“Proactive and Sound Business Logic”

The merger with LMT Group is surprising, but contains a healthy dose of business logic based on a trend that increasingly points to the development of complete product development systems, where software solutions that traditionally served the product development side are connected to manufacturing and automation.

"Together with LMT Group, we can create and offer additional solutions in Industry 4.0 and digitalization to our customers," says Jan Lundström.

The LMT Group/Ravema and PLM Group combination has the potential to become an important player, which can help them to create broader solutions; perhaps these will manifest in integrated solutions around PLM and automation.

This is a tough challenge, but with the financial muscle and resources that can be allocated within the framework of the new ownership structure, they just might succeed.

LMT’s Companies Leading in Their Arena

The companies in LMT Group sell production solutions to the Northern European engineering industry including machinery, automation, tools, industrial supplies and related aftermarket products.

"The companies want to create a unique value for the customer, build long-term business relationships and take overall responsibility in the process. This is done through leading products and suppliers such as Mazak, Hoffmann Group, Prima Power, as well as competent and creative employees," the company stated.

Customers include suppliers of the automotive industry, energy companies, mining companies, sheet metal manufacturers, as well as the general engineering industry.

However, as previously noted, the most interesting thing about LMT is the building of integrated end to end solutions relating to the companies under the Ravema umbrella.

An example of the company's "industrial ideology" is Ravema's Smart Automation solution that offers “fast and easy” robot programming integrated into the Mazak Smooth interface. Ravema, together with its partners, has developed a system where users don’t need to leave Mazak's well-known “Smooth” interface in order to program the robot.

Add to this Ravema’s documented, long-standing knowledge and experience in tailoring cost-effective solutions with high-quality robots and easy-to-use control systems, and LMT Group has the potential for a strong product realization system. The link between product development and production-ready solutions with the automation and machine side, means the company has good prospects for creating powerful solution packages.

Turnover of €400 Million

LMT Group is a strong market player, whose long-term goal is to build a broad and stable platform in value-based technology.

"By building the group in different technology areas with similar business ideas, we create space and power for future growth within each company. This also increases our market presence and potential penetration in future growth areas such as 3D printing,” noted Jörgen Fredsson.

S&A Heating Up: Addnode Group Strengthens PLM Division with Two Acquisitions

There’s no doubt that simulation and analysis (S&A) is hot right now, with recent years seeing a boom in terms of investment in simulation solutions.

S&A software is playing an increasingly important role in new disruptive technologies, such as generative design, digital twins, additive manufacturing and Industrial Internet of Things (IIoT).

Therefore, it is not surprising that Addnode Group, with its subsidiary TechniaTranscat, recently announced its acquisition of simulation specialist Strategic Simulation & Analysis (SSA) and its sister company Simuleon. While the price tag is not being disclosed, the companies have revenue of approximately $6 million. 

TechniaTranscat’s CEO, Jonas Gejer, noted that the acquisitions of SSA and Simuleon are in line with Addnode Group's strategy to become an international market leader in software and services for simulation, design and engineering.

Both acquisitions will be part of Addnode’s Product Lifecycle Management Division which includes TechniaTranscat and Intrinsys.

“SSA and Simuleon, two very successful simulation companies with specialist knowledge, will enable the Addnode PLM division to further extend its position as the knowledge leader, providing superior capabilities and service to our European and international customers. The combination of Intrinsys, TechniaTranscat and SSA/Simuleon will form the clear #1 Dassault Systèmes Value Solution partner with the most extensive experience selling, implementing and supporting the 3DEXPERIENCE platform,” says Jonas Gejer.

Important for the Position as a Leading PLM Consultant
As a bit of background, it should be noted that SSA and Simuleon both work with Dassault Systèmes simulation platform, SIMULIA, and its related products, as well as providing software, education and consulting in computer-aided technology and perform product simulation using Finite Element Analysis (FEA) and multiphysics. SSA is located in Charlbury, England and Simuleon is located in Zaltbommel, Netherlands.

All in all, Addnode’s recently announced acquisitions provide further evidence that the simulation offerings are becoming more important as part of modern product development. We see the use of simulation and analysis growing on all fronts, but the integration and use of these tools is by no means simple. Efficient utilization requires competency both among those who provide applications and those who are going to use the solutions.

This announcement from Addnode shows that the company continues to work on being a leading provider of expertise, software, education and consulting in one of PLM's fastest growing sub-areas.