VÉLIZY-VILLACOUBLAY, FRANCE — Dassault Systèmes announced its intent to acquire geological modeling and simulation company Gemcom Software International (Gemcom) for approximately $360 million. Privately-held Gemcom is the world leader in mining industry software solutions, headquartered in Vancouver.
“With the acquisition of Gemcom, coupled with our 3D Experience platform capabilities, our objective is to model and simulate our planet, improving predictability, efficiency, safety and sustainability within the Natural Resources industry and beyond,” said Bernard Charlès, President and CEO, Dassault Systèmes. “To support this ambitious goal, we have created a new brand, GEOVIA. Raw material provisioning and long term resource availability is a major concern for society. Today’s announcement is a significant step towards fulfilling our purpose of providing 3D experiences for imagining sustainable innovations to harmonize products, nature and life.”
Today’s mining industry, the primary user of Gemcom’s software, is growing quickly. There are more than 5,500 operating mines worldwide and approximately 15,000 mining projects. The associated mining software market is experiencing strong growth, with third-party analysts estimating a double digit trend for the foreseeable future.
”This acquisition will clearly benefit Gemcom’s customer base, bringing global support and enterprise collaboration. Advanced technologies in 3D modeling and simulation will not only enable engineers and geologists to model and visualize resources but also improve sustainable mine productivity,” said Rick Moignard, President and CEO, Gemcom. “We believe that with Dassault Systèmes’ support, we will be able to address global issues for our customers as a real partner. None of our competitors can match that in this industry.” Rick Moignard will become the CEO of the newly created GEOVIA brand, after completion of the Gemcom acquisition.
After the closing of the transaction, Gemcom’s 360 employees and management will remain in place and continue serving the mining industry. By leading the new GEOVIA organization, Gemcom’s management will champion the further development of Dassault Systèmes’ strategy of modeling the natural world. In addition, Gemcom’s current offices will further extend the overall geographic reach of Dassault Systèmes in Australia, Africa, Canada, South America, Kazakhstan, Mongolia, Indonesia, and Russia.
Dassault Systèmes and Gemcom have entered into a definitive acquisition agreement whereby Dassault Systèmes will acquire Gemcom in an all cash transaction. The completion of the acquisition is subject to normal closing conditions, including regulatory approvals. The transaction is expected to be completed in July 2012, and Gemcom to be accretive to Dassault Systèmes non-IFRS earnings and neutral to its non-IFRS operating margin.