Spurred by robust growth in the mining software market, Dassault Systèmes is eyeing a new acquisition.
It has announced its intention to acquire geological modelling and simulation company Gemcom Software International (Gemcom) for about US$360 million.
Dassault Systèmes is a 3D design and Product Lifecycle Management (PLM) solutions provider. Privately-held Gemcom is the world leader in mining industry software solutions, headquartered in Vancouver.
The two companies have entered into an agreement whereby Dassault Systèmes will acquire Gemcom in an all cash transaction, the company has stated. The completion of the acquisition is subject to regulatory approvals.
The transaction is expected to be completed in July 2012.
Fast growing software sector
The mining industry, the primary user of Gemcom's software, is growing quickly. There are more than 5,500 operating mines worldwide and about 15,000 mining projects. It is no surprise that the associated mining software market is experiencing strong growth, with third-party analysts estimating a double digit trend for the foreseeable future.
"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 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."
Post-acquisition, Gemcom's 360 employees and management will remain in place and continue serving the mining industry, Dassault Systèmes said in its statement.
Also, there will be expansion in Gemcom's current offices in Australia, Africa, Canada, South America, Kazakhstan, Mongolia, Indonesia, and Russia.
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