Dassault to Acquire IBM PLM Operation for $600M

By Jessica Davis  |  Print this article Print

As part of the deal, Dassault Systemes gets customer contracts and related assets. Plus, the French technology company will become an IBM Global Alliance Partner.

Dassault Systèmes has agreed to buy a portion of IBM’s sales and client support service for its product lifecycle management software in a deal valued at $600 million in cash.

The deal includes the PLM software portfolio, customer contracts and related assets. It marks the biggest such deal in Dassault’s history, and the French technology company says it will integrate part of IBM’s sales force and operations into its own team.

In addition, Dassault will become an IBM Global Alliance Partner to expand the services partnership between the two companies.  

Dassault says the deal will mean simplified engagement and support processes for its PLM customers.

"The adoption and integration of PLM and 3D collaboration by a growing number of enterprises require deep industry knowledge," said Bernard Charlès, president and CEO of Dassault Systèmes, in a prepared statement.

"We are reaching a new level of customer engagement built on commitment, multi-industry knowledge and high-value solutions for sustainable innovation," Charlès said. "Looking forward, the wide adoption of 3D lifelike experience and PLM will require the combination of direct sales, our network of partners and online communities."

IBM and Dassault expect to continue joint investment in developing, deploying and supporting client PLM environments and delivering integrated PLM solutions to their clients worldwide. In addition, the companies say they are dedicated to strengthening and extending their cooperation in professional services, cloud computing, middleware, flexible financing, hardware, and sales and distribution.

"With this announcement, IBM is evolving its partnership with DS to better align our mutual strengths and better address our clients' PLM needs," said Tom Hawk, general manager of IBM's Global Industrial Sector, in a prepared statement.

IBM Software Group Senior Vice President Steve Mills adds that the deal will help both IBM and Dassault grow in the PLM space by allowing them each to focus on core competencies.

"The extensive use of IBM Software platforms in the DS application portfolio will continue to make our partnership unique and valuable to our customers," he said in a statement.

IBM and Dassault expect the deal to close in the first half of 2010, subject to execution of local agreements and completion of regulatory processes and applicable labor relations requirements in various countries.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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