Hexagon to buy MSC Software for $834 million

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The corporate parent of Hexagon Manufacturing Intelligence, the Swedish metrology equipment and CADCAM software provider, is buying computer aided engineering (CAE) software developer MSC Software.

MSC Software develops simulation for virtual product and manufacturing process development. Hexagon says: “MSC’s simulation analysis capabilities empower customers to optimise design for production, ensuring downstream productivity, product quality and durability. The acquisition strengthens Hexagon’s ability to connect the traditionally separate stages of design and production – integrating real-world data generated on the production floor with simulation data to further improve a customer’s ability to reveal and correct design limitations and production problems prior to manufacturing.”

Hexagon President and CEO Ola Rollén says: “We can now leverage the data our MI [manufacturing intelligence] division is generating to improve design choices and processes upstream in the workflow. The acquisition will also open up new markets and touchpoints for MSC via our PPM division.” By PPM he is evidently referring to 2010 acquisition Intergraph Process, Power and Marine, a provider of engineering software for design, construction and operation of such facilities.

California-based MSC Software had 2016 sales of $230 million. Deal closing is expected in April.

The deal has some parallels with US metrology company Faro’s December 2016 acquisition of German augmented reality software developer MWF-Technology, which is also intended to offer a virtual simulation of the physical world.