Siemens To Acquire Simulation Developer LMS International
By Patrick Waurzyniak
Siemens AG (Berlin and Munich) continued its aggressive expansion into the industrial software market with the announcement today that it would purchase privately held LMS International NV (Leuven, Belgium), a developer of test and mechatronic simulation software, in a deal valued at approximately 680 million euro.
“The mechatronic simulation will become more and more important for intelligent and competitive product development and production processes. With the acquisition of LMS, we are entering a leading position in this software segment and can significantly boost the pace and power of our clients’ innovation,” Siegfried Russwurm, member of the Siemens AG Managing Board and CEO of the Industry Sector, said in a statement.
With the acquisition, Siemens said it will become the first PLM software company to provide a closed-loop systems-driven product development solution extending all the way to integrated test management. In addition to test and mechatronic simulation, LMS provides model-based systems engineering for the automotive, aerospace and other advanced manufacturing industries. LMS has more than 1,200 employees and had revenues of about 140 million euro for the first nine months (Jan. 1-Sept. 30), according to Siemens.
The transaction is subject to approval by regulatory authorities. Upon completion, the deal would be the latest in a series of industry software acquisitions by Siemens since its 2007 purchase of UGS Corp. that created Siemens PLM Software (Plano, TX), which is part of the Siemens Industry Automation Division (Nuremberg, Germany). On Oct. 8, Siemens announced it would acquire Kineo CAM, a developer of computer-aided motion software, and the company’s other acquisitions since 2011 include Active Tecnologia em Sistemas de Automação (Brazil); Vistagy (Waltham, MA); IBS AG (Germany); Perfect Costing Solutions GmbH (Germany); and VRcontext International S.A. (Belgium).
LMS will become a separate business unit within Siemens PLM Software, similar to its Vistagy unit, which develops composites engineering software and solutions. With its combination of mechatronic simulation software, testing systems and engineering services, LMS focuses on mission-critical engineering attributes, ranging from system dynamics, structural integrity and sound quality, to durability, safety and power consumption.
“By acquiring LMS we continue to deliver on our goal of providing the full breadth of product development solutions, from the virtual to the physical,” said Chuck Grindstaff, president and CEO of Siemens PLM Software. “This will enhance our core competencies by adding model-based simulation, design, test and measurement capabilities to both the virtual design and physical test process. Integrating the full environment gives our customers the ability to bring together information from the logical model, physical model and functional model to refine and optimize designs and measure results, which transforms decision making in product development.”
“We will continue to focus on our core strength of test and mechatronic simulation,” said LMS Chairman and CEO Urbain Vandeurzen. “In combination with the entire Siemens PLM Software portfolio we plan to further expand our leading position in the automotive, aerospace and other advanced industries.”