Dassault Systemes and IBM Report Integration Effort

IBM and Dassault Systemes (DS) has signed an agreement under which DS intends to acquire IBM sales and client support operations encompassing DS's Product Lifecycle Management (PLM) software application portfolio, as well as customer contracts and related assets, for approximately $600 million in cash.

DS and IBM have also defined the next steps in their long-standing relationship, and plan to establish DS as an IBM Global Alliance Partner and expand their services partnership.

The transaction is expected to be completed in the first half of 2010, subject to the execution of local agreements and completion of regulatory processes and applicable labor relations requirements in various countries.

While the transaction is being completed, both companies expect their existing operations, including customer service and product availability, to continue as usual. After completion of the transaction and integration of the two companies' PLM operations, DS PLM customers will benefit from simplified engagement and support processes for DS's PLM product portfolio.

"The adoption and integration of PLM and 3D collaboration by a growing number of enterprises require deep industry knowledge," said Bernard Charles, president and CEO of Dassault Systemes. "The planned integration of the IBM sales force and related business operations represents the largest investment in our corporate history. We are putting our customers and partners first, creating a globally efficient sales organization to bring the value of V6 PLM applications to every enterprise in every industry.

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

Pursuant to the planned global alliance agreement, IBM and DS expect to continue to jointly invest in developing, deploying and supporting client PLM environments, delivering integrated PLM solutions to their clients.

"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, IBM Global Industrial Sector. "This transaction also helps fuel IBM's focus on PLM integration through middleware, business transformation and application services, and dynamic infrastructure."

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