Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance
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The disruptive impact of IoT and Artificial Intelligence Software Solutions on accelerating manufacturing effectiveness may begin to see cognitive applications, where in the future of traditional UI is replaced by a conversational interface.
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Semelhante a Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance
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Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance
- 2. World Financial Symposiums www.wfs.com WFS is an international organization dedicated to educating technology leaders through monthly, Market Spotlight webcasts and day-long Growth and Exit Strategies for Software and IT Companies conferences.
- 3. Steve joined Corum after 25 years of executive experience in various high-tech industries with both public and private venture-backed startups. He has extensive global experience, opening international markets and growing sales from zero to tens of million in revenue. He has been on the forefront of selling several companies and spinning off software divisions, highlighted by the sale of GetFon to Alestra (AT&T Mexico). He is fluent in Spanish. Steve was the founding CEO of Solera Networks, a real-time intrusion detection security company. He also co-founded Auction Trust Network, an eCommerce company for online exchanges; which he sold to MediaForge (Rakuten Marketing). Steve is a board member of several software companies and has industry expertise in several areas: enterprise apps and infrastructure, security, mobile and wireless, media & entertainment, supply chain, and embedded devices/systems (IoT). Steve Jones Vice President, Corum Group Moderator
- 4. Agenda • Introduction • Manufacturing Software M&A Trend Report • Panel Discussion • Allan Wilson • Joe Barkai • Peggy Smedley • Attributes of Valuable Manufacturing Software Acquisitions • Q&A
- 5. Manufacturing Technology Today • Requires agile & responsive digital infrastructure • Huge amounts of data being created daily • Tech’s challenge—leverage the latter to solve the former • Key trends: • IoT/M2M • Artificial Intelligence • Real-time monitoring • Self-diagnosis/Self-healing • Much more…
- 6. Yasmin joined Corum Group in 2015 as a research analyst. Previously she worked as a finance and operations coordinator at a financial technology startup and provided consultation services to an institutional investing advisory firm. Yasmin graduated from the Foster School of Business at the University of Washington, specializing in Finance and International Business. Yasmin Khodamoradi Research Analyst, Corum Group
- 7. Manufacturing Tech M&A Activity (2013 H1-2016 H1) 0 10 20 30 40 50 60 $- $1 $2 $3 $4 $5 $6 H1 H2 H1 H2 H1 H2 H1 2013 2013 2014 2014 2015 2015 2016 Deal Value ($B) Deal Count Source: 451 Research
- 8. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Source: 451 Research
- 9. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: ORTEMS S.A.S. [France] Acquirer: Dassault Systemes S.A. [France] Transaction value: Undisclosed ‒ Collaborative manufacturing planning and production scheduling software and SaaS Source: 451 Research
- 10. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Accenture Ltd. [USA] Acquirer: OPS Rules [USA] Transaction value: Undisclosed ‒ Machine learning-enabled supply chain analytics consulting and performance optimization services for enterprises in consumer goods, retail, manufacturing and distribution industries Source: 451 Research
- 11. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: netfabb GmbH [Germany] Acquirer: Autodesk [USA] Transaction value: Undisclosed ‒ 3D printing software and managed model repair services for the industrial additive manufacturing industry Source: 451 Research
- 12. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Arcam AB [Sweden] Acquirer: GE Aviation (General Electric) [USA] Transaction value: $697M, 8.8x Revenue ‒ Inventor of the electron beam melting machine for metal-based additive manufacturing Source: 451 Research
- 13. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: SLM Solutions GmbH [Germany] Acquirer: GE Aviation (General Electric) [USA] Transaction value: $683M, 7.6x Revenue ‒ Produces laser machines for metal-based additive manufacturing in the aerospace, energy, healthcare, and automotive industries. Source: 451 Research
- 14. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Forming Technologies Inc. [Canada] Acquirer: Hexagon AB [Sweden] Transaction value: Undisclosed ‒ Provides design, process planning and simulation software for use in the manufacturing of sheet metal components. Source: 451 Research
- 15. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Electronics for Imaging Inc. [USA] Acquirer: Optitex Ltd. [Israel] Transaction value: $52.8 Million ‒ Provides 2D and 3D clothing and apparel CAD, 3D computer-aided CAM and virtual prototyping for clothing and textile manufacturers globally. Source: 451 Research
- 16. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: MagneMotion Inc. [USA] Acquirer: Rockwell Automation Inc. [USA] Transaction value: Undisclosed ‒ Provides sensor-based linear synchronous motor-enabled (LSM) assembly line and conveyor hardware and software systems for the manufacturing industry. Source: 451 Research
- 17. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Kepware Inc. [USA] Acquirer: PTC [USA] Transaction value: $100M, 5x Revenue ‒ Provides communication drivers connectivity software for use in industrial automation applications Source: 451 Research
- 18. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Cimatron Ltd. [USA] Acquirer: 3D Systems Inc. [USA] Transaction value: $97M, 1.6x Revenue ‒ Develops and distributes integrated 3D CAD and CAM software to the manufacturing industry in over 40 countries worldwide. Source: 451 Research
- 19. Top Acquirers by Volume (2013-YTD) 0 1 2 3 4 5 6 Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open Sold to Target: Orchestro [USA] Acquirer: E2Open (Insight Venture Partners) [USA] Transaction value: $100M, 5x Revenue ‒ Provides retail point-of-sale-based supply chain analytics and demand- forecasting SaaS that uses big data to predict customer demand and plan in- store product availability, for retail brands and manufacturers. Source: 451 Research
- 20. Selected Transactions: IoT Sold to Target: noFilis AutoID GmbH [Germany] Acquirer: KATHREIN-Werke KG [Germany] Transaction value: Undisclosed ‒ Provides RFID automatic identification, tag movement detection, track and trace and M2M data and device management software, middleware, and edgeware. Source: 451 Research
- 21. Selected Transactions: IoT Sold to Target: M2M Data Corporation [USA] Acquirer: Caterpillar Inc. [USA] Transaction value: Undisclosed ‒ Sensor-based M2M remote monitoring systems and SaaS for equipment monitoring, machinery analysis and real-time remote asset management. Source: 451 Research
- 22. Selected Transactions: IoT Sold to Target: NDC Automation Pty Ltd. [Australia] Acquirer: Dematic Group [Luxembourg] Transaction value: Undisclosed ‒ Provides autonomous guided vehicles (AGV) and related M2M and remote control servers, as well as warehouse and pallet management software for manufacturers. Source: 451 Research
- 23. Selected Transactions: IoT/ Industrial Automation Sold to Target: Industrial Evolution Inc. [USA] Acquirer: Yokogawa Electric Corporation [Japan] Transaction value: Undisclosed ‒ Provides Web-based industrial plant data sharing Data-as-a-Service (DaaS) that collects and shares M2M real-time process data from devices and systems at industrial facilities Source: 451 Research
- 24. Selected Transactions: Industrial Automation Sold to Target: Mikrotron GmbH [Germany] Acquirer: AMBIENTA SGR S.p.A. [Italy] Transaction value: Undisclosed ‒ High-speed machine vision camera recording systems and image processing software to monitor industrial automation and motion processes Source: 451 Research
- 25. Manufacturing M&A Valuations Commodity: • Contract designers/manufacturers • Systems Integrators • Industrial automation controls Commercial Execution: • Sensor systems • Automated logistics, SCM • Embedded software, M2M Breakout: • Predictive analytics • Robotics systems • Additive Manufacturing 0% 10% 20% 30% 40% 50% 60% <2x 2-4x >4x EV/S Multiples Source: 451 Research Breakout Commercial Execution Commodity
- 26. Allan has over 30 years of executive and entrepreneurial experience and has built and sold several software companies in sectors including manufacturing, supply chain, big data, predictive analytics and social networks. He has a deep understanding of Aerospace, Automotive, High Tech, Healthcare, Consumer Products and Military Contracting operating models. Allan has extensive international experience and lived in Germany for a time working for SAP, following the sale of his company to them in 2009. Allan Wilson Vice President, Corum Group
- 27. As an IoT (Internet of Things) futurist, Peggy Smedley is very succinct when she says, “With great technology, comes great responsibility.” As the digital transformation of a globally connected society continues to evolve at an unprecedented speed, the impact of, every individual, company, government, organization, and not-for-profit will need to better understand both the physical and digital components of the IoT. Peggy has spent a career as an entrepreneur, executive, strategist, and renowned author and an award-winning editor having earned numerous honors for editorial excellence. She authored Mending Manufacturing: How America Can Manufacture its Survival, a book detailing all aspects of the American manufacturing crisis. She has also been a guest on television business and news programs and has been a voice on many national commercially syndicated radio shows. She is an internationally known speaker and highly respected personality in the media world. She is recognized globally through her weekly Internet radio show, The Peggy Smedley Show, which she launched in 2008 and is already heard by hundreds of thousands of listeners and is downloaded on iHeartRadio and iTunes. . Peggy Smedley Founder, Peggy Smedley Institute
- 28. Joe Barkai (www.JoeBarkai.com) is a recognized industry analyst, strategy adviser, and author of The Outcome Economy: How the Industrial Internet of Things is Changing Every Business. His focus is on researching, forecasting and the strategic application of industrial Internet of Things (IoT) technology and the union between IoT and cloud technologies, and business processes such as product innovation, manufacturing, Product Lifecycle Management (PLM) and Service Lifecycle Management (SLM). With more than 30 years of experience helping organizations across diverse industries that include automotive, high tech and medical equipment chart their product and market strategies, Joe offers a unique ability to “connect the dots” and articulate the always-evolving business value of technology. Joe Barkai Author, The Outcome Economy and the Internet of Things
- 29. Panel Discussion Allan Wilson Vice President, Corum Group Peggy Smedley Founder, Peggy Smedley Institute Joe Barkai Author, The Outcome Economy and the Internet of Things
- 30. Attributes of Valuable Manufacturing Software Acquisitions 1. Leverage one or more key tech trends • AI, IoT, Security, etc. 2. Focus on the “content, not the conduit” • Connectivity, etc. becoming commoditized 3. Demonstrate outcome-based successes • Show clear ROI in specific use cases for customers 4. For products – leverage the ecosystems • The sector is hot, don’t try to do it all yourself 5. For services – keep focus • Avoid the temptation to do everything for anyone
- 31. Q&A We welcome your questions! • Use Q&A window on left side • Submit to queue at any time • If your questions in not answered, we will attempt to follow up after the event
- 32. Contact Us For further information or copies of today’s presentation: Visit www.wfs.com or Email Steve Jones: SteveJ@corumgroup.com Allan Wilson: AllanW@corumgroup.com
Notas do Editor
- Manufacturing Tech M&A activity has been growing at a steady clip since 2014, with deal count and value reaching its highest levels yet, with the exception of the $4B Invensys deal late 2013. With the growing adoption of IoT, robotics, industrial automation and 3D printing by tech titans in manufacturing, we can expect middle-market M&A to continue driving this trend as strategic acquirers and PE portfolio companies seek to fill their gaps.
- Looking at the purchases of the most active buyers gives us insight into the technological trends driving manufacturing today. Over the past fourteen quarters, Dassault has lead in terms of deal volume, with Accenture and Autodesk trailing behind with 4 deals each.
- Dassault most recently reinforced their production planning and scheduling abilities by acquiring ORTEMS out of France…
- …while Accenture enhanced their machine learning capabilities through the purchase of supply chain analytics consulting firm OPSrules.
- Autodesk most notably picked up 3D printing software provider netfabb this time last year, to invest in their potential to 3D print production-grade parts at scale.
- A couple weeks ago GE announced their intent to invest a billion and a half to buy not one, but two public additive manufacturing companies: Arcam from Sweden and SLM Solutions out of Germany. This move should help bolster GE’s material science and additive manufacturing capabilities, as they seek to expand their leadership in the area, scale up production, and find new ways to leverage their Predix platform. While these companies will maintain operations in Europe, the fact that GE’s Alabama based manufacturing plant is already poised for sustainably high and long-term additive production of jet engine parts, is another example of cutting edge manufacturing and automation technology enabling a renaissance of sorts in the American manufacturing industry. he LEAP engine is the new, best-selling engine from CFM International, a 50/50 joint company of GE and Safran Aircraft Engines of France. More than 11,000 LEAP engines are on order with up to 20 fuel nozzles in every engine, thus setting the stage for sustainably high and long-term additive production at GE Aviation’s Auburn, Alabama, manufacturing plant. Production will ramp up to more than 40,000 fuel nozzles using additive by 2020. GE Aviation is also using additive manufacturing to produce components in its most advanced military engines. In the general aviation world, GE is developing the Advanced Turboprop Engine (ATP) for a new Cessna aircraft with a significant portion of the entire en Over time, we plan to extend the line of additive manufacturing equipment and products.”
- A couple weeks ago GE announced their intent to invest a billion and a half to buy not one, but two public additive manufacturing companies: Arcam from Sweden and SLM Solutions out of Germany. This move should help bolster GE’s material science and additive manufacturing capabilities, as they seek to expand their leadership in the area, scale up production, and find new ways to leverage their Predix platform. While these companies will maintain operations in Europe, the fact that GE’s Alabama based manufacturing plant is already poised for sustainably high and long-term additive production of jet engine parts, is another example of cutting edge manufacturing and automation technology enabling a renaissance of sorts in the American manufacturing industry.
- …Hexagon brought Forming Technologies into its fold, combining Forming’s Computer aided engineering and automotive sheet metal expertise with their CAM and metrology solutions to better serve automotive customers.
- …and Electronics for Imaging shored up their leadership in textile printing through its purchase of Optitex, which provides 2-D and 3-D fashion design and prototyping software for textile brands and manufacturers like UnderArmour.
- Rockwell Automation complemented its 2013 purchase of Jacobs Automation with intelligent conveying systems provider, Magnemotion, in a bid to become the leader in the emerging independent cart solutions area.
- PTC most recently added to its IoT stack by purchasing Kepware last December, which enables connectivity and data sharing among disparate systems for industries that rely on legacy equipment.
- 3D systems has been lying dormant since their 2014 purchase of CAD CAM provider Cimatron.
- Finally, Supply chain leader E2Open recently acquired big data analytics provider Orchestro, creating an end-to-end demand-driven supply chain network that leverages Point of Sale data to help manufacturers become pro-active in preventing out of stocks and disruptions in the supply chain
- In the broader market, buyers have been eagerly snapping up IoT tech to help manufacturers reduce costs, reduce downtime, and even increase quality. Germany’s KATHREIN picked up one of its partners, automatic identification provider nofilis, allowing the company to sell turnkey solutions that combine KATHREIN’S RFID readers with nofilis’ IoT integration and Track & Trace visualization software.
- Stateside, Caterpillar folded M2M Data Corporation’s remote equipment monitoring into its CAT Connect unit, enabling them to deliver high-level operational support to existing customers
- Autonomous guided vehicle and software provider NDC was picked up the Dematic Group, allowing them to deploy AGV solutions for storing, moving and retrieving goods.
- Yokogawa expanded its advanced solutions in the industrial automation and control field through its acquisition of plant data sharing services provider Industrial Evolution.
- In other tech, we saw German high-speed machine vision systems provider Mikrotron get picked up by Italian private equity firm Ambienta as a bolt on to its 2012 purchase of Tatille to create a European leader in machine vision, showing PEs can be just as ambitious as strategic acquirers in this space.
- Looking at disclosed valuation multiples, certain patterns start to emerge. On the lower end, contract designers and systems integrators tended to achieve sub 1x multiples while industrial automation controls and CAD/CAM software fare slightly better just under 2x. In the middle range we see a broader range of technologies, with sensor systems providers leading the charge. Companies on the higher end of the spectrum include many predictive analytics companies and other cutting edge tech like robotics, and additive manufacturing companies. These progressively higher multiples reflect buyers’ willingness to splurge to stay on the cutting edge.
- Suggested change, for Dave’s approval.
- Suggested change, for Dave’s approval.