Dassault Systemes to Buy IBM PLM for $600 Million

Firms plan a global alliance to promote product lifecycle management with multi-industry knowledge

International Business Machines Corp. has agreed to sell its Product Lifecycle Management software business to Dassault Systemes for $600 million. Dassault is primarily known as a developer and supplier of modeling and simulations software, so the sale will enhance its portfolio even as it reduces IBM’s range of applications.

The two companies indicated they would retain an alliance by which Dassault will market IBM services and infrastructure software. Dassault said the enhanced services would benefit its global marketing effort with IBM resources and expertise to improve client PLM environments, and leverage its own DS V6 portfolio.

The sale should be complete in the first half of 2010. Once their global alliance is in place, IBM and DS promise joint investments to develop, deploy and support client PLM environments, to deliver integrated PLM solutions to clients globally.

“The adoption and integration of PLM and 3D collaboration by a growing number of enterprises require deep industry knowledge," stated Dassault president and CEO Bernard Charles.

"We are reaching a new level of customer engagement built on commitment, multi-industry knowledge and high-value solutions for sustainable innovation," added Charles. "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."

Tom Hawk, IBM Global Industrial Sector general manager said IBM is “evolving” its DS partnership to align their mutual strengths and address clients' PLM needs. "This transaction also helps fuel IBM's focus on PLM integration through middleware, business transformation, and application services, and dynamic infrastructure," according to Hawk.

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