Consolidating sector - Vero Software in profile

The big news in this sector is the rapid acquisition of companies by Vero Software. In January this year, the company, which has been owned by US-based Battery Ventures since 2010, snapped up French CADCAM expert Sescoi, whose best-known product is WorkNC; and the following month it added US-based Surfware Inc's Surfcam assets to its portfolio. MORE OF THE SAME These two moves by Vero came after it had already purchased the Planit group in 2011, whose brands include Radan, Edgecam and Alphacam; while in 2006, Vero, then a PLC, acquired UK-based CADCAM firm Camtek. So, the number of brands that fall under the Vero Software banner make quite a long list (see box). The acquisition of Sescoi International firmly establishes Vero as the world's largest and number one CAM specialist, says the company in announcing the purchase, adding that the acquisition will provide the platform to build even stronger products across the range through a significantly enlarged development team and distribution channel, with experienced, time-served, industrial knowledge. Commenting on the Sescoi acquisition, Richard Smith, CEO of Vero Software, says: "Across the enlarged group, the complementary products address the worldwide need for efficient and innovative CAD/CAM/CAE technology. With an unrivalled breadth of market-leading solutions for specific manufacturing techniques and an expanded distribution capability, we will continue to provide excellent service and support to both existing and new customers, and further extend a growing influence on the global market. We fully recognise the importance of product branding and customer loyalty. It is important to emphasise that we will continue to invest in the WorkNC product suite, and welcome the existing Sescoi partners and resellers into the Vero network. We will move forward together with the expertise, knowledge and resources necessary to deliver even higher levels of productivity to our customers." Bruno Marko, founder of the Sescoi Group, comments: "We are extremely pleased to be joining the Vero Group. Since originally founding the company in 1987, Sescoi has become one of the world's key CADCAM providers, with WorkNC. However, with Vero's global distribution, additional development resources and proven technology sharing concept, I am certain the products will advance at an even faster pace, and continue to provide innovative solutions that boost productivity, bolster competitiveness, reduce costs and improve quality." This was followed just last month with the purchase by Vero Software of Surfware Inc's Surfcam assets. This purchase does not include Surfcam's TrueMIll technology, however. Indeed, Surfware Inc has been renamed TrueMill Inc, which will continue developing and licensing TrueMill patented technology. This technology offers constant cutter engagement angle, and supports both 2D and 3D machining, allowing a cut that is both faster and deeper. Edgecam already has similar technology, called Waveform. Of this acquisition, Vero Software CEO Richard Smith states: "Surfcam is a robust and well respected CADCAM system, with a large number of loyal customers and knowledgeable resellers. With an emphasis on sharing already proven technologies, we will provide the development platform to reinvigorate the Surfcam product, and continue to help its customers become more efficient, profitable and successful." He again underlined the importance of branding and added that "it is important to emphasise that we will continue to invest in Surfcam through our new subsidiary Surfcam Inc, and welcome the existing US and overseas Surfware partners and resellers into the Vero network." Over 26,000 Surfcam installations have been completed since the company was set up by Alan Diehl and his son Larry in 1988, with Alan's other son, Bryan, joining the company in 1990. Alan Diehl says of the acquisition: "We are confident that Vero's additional resources and global distribution will take Surfcam to new levels of efficiency, and will continue to provide solutions that boost our customers' productivity, reduce costs and improve quality." BRAND VALUE The oft-stated message about the importance of brands clearly means that the acquired products will continue to be developed and supported, with their marketing possibly expanded, as long as that doesn't introduce a new competitor to one of Vero Software's other brands in an existing market for no added business benefit. What will happen is that development will be rationalised, with software components shared between products. Indeed, the statements by CEO Richard Smith say exactly that. Already Waveform technology, originally developed for Edgecam, is now part of Alphacam, for example. This sharing of software components between previously separate brands is something already seen with Delcam, too, with, for example, elements of its PowerMill having been taken into FeatureCAM. Shared software components across different vendors' CADCAM products have been part of the industry for a while, however. For example, German company ModuleWorks provides some of them to "over 60% of the top CAM software systems available". These include Edgecam, Mastercam, Surfware, ProtoTRAK (as used on XYZ machine tools) and NCG CAM. ModuleWorks components include: 5-axis machining toolpath generation strategies, simulation and post-processing tools; 4-axis rotary machining; 3-axis machining; and simulation and verification software. ModuleWorks also offers methods and utilities to help integrators include the two simulation packages into their CNC systems. So, with its multiple brands, Vero Software will be able to rationalise and accelerate development, amortise related costs better and, perhaps, have less need for the services of external component companies like ModuleWorks; all of which offers the company potential for more capable, more fast developing and more differentiated software. Box item 1 of 1 Vero Software's roll call [] Alphacam (ex-Planit) – Alphacam is a leading CAM solution for wood, stone, composites and metal components from 2-axis through to 5-axis NC programming applications. The emphasis behind the development of Alphacam is "to provide customers with productivity, reliability and flexibility". [] Cabinet Vision (ex-Planit) – woodworking software. [] Edgecam (ex-Planit) – claimed to be "a market-leading computer aided manufacturing (CAM) system for NC part programming. With unparalleled ease of use and sophisticated toolpath generation, it's the only CAM system you'll need for milling, turning and mill-turn machining". [] Edgecam "utilises in-house knowledge and experience to drive the CAM process, with automation tools to suit different applications – allowing you to maintain your competitive edge". [] Javelin (ex-Planit) – a flexible, scalable and intelligent production planning and control system. [] Machining Strategist – a powerful 3D CAM product that generates optimum roughing and finishing CNC toolpaths from the complex shapes generated by all major 3D modelling systems. [] MCS (ex-Planit) – DNC software that simplifies, organises and automates routine tasks associated with the control of production-related data, optimising efficiency, reducing the time and effort required for carrying out procedure-based routine tasks. [] PEPS (ex-Camtek) – wire EDM and 5-axis laser profiling (sheet and tube) CAM software. [] Radan (ex-Planit) – described as the total CAD, CAM solution for the sheet metal industry. [] WorkNC CADCAM (Sescoi) – software for 2D to 5-axis NC machining. [] WorkXPlore 3D (Sescoi) – collaborative viewer. [] WorkNC Dental & Medical (Sescoi) – sector-specific application . [] WorkPLAN (Sescoi) – an ERP and job management solution for custom manufacturers. [] Surfcam (ex-Surfware Inc) – 2 to 5-axis CAM software. [] SMIRT – CADCAM solution for stamping die manufacturing. [] VISI – claimed to be one of the world's leading PC-based CADCAM solutions for the mould & die industries. Said to offer a unique combination of applications, fully integrated wireframe, surface and solid modelling, comprehensive 2D, 3D and 5-axis machining strategies, with dedicated high speed routines. First published in Machinery, March 2013