Hexagon AB acquires MSC Software
MSC Software Corporation creates the simulation software used by manufactures to improve their engineering methods, offering crucial services like structural analysis to multiple industries. The company has a long track record in getting it right – founded in 1963, it’s one of the ten original software companies, and still a global leader. News broke earlier this month that Swedish geospatial measuring company Hexagon AB has agreed to acquire the older company for $834 million – after posting great results at the end of January, this is yet more good news for Hexagon investors.
Hexagon AB is up 13% already this year!
As of 13 February 2017 367.00
SOURCE: Yahoo Finance
In a statement released by Hexagon, president and CEO Ola Rollén was eager to highlight the benefits of the acquisition:
"MSC represents a game-changer in our mission to deliver actionable manufacturing intelligence, taking us another step closer to realizing our smart connected factory vision in discrete manufacturing industries such as automotive and aerospace. We can now leverage the data our MI division is generating to improve design choices and processes upstream in the workflow. The acquisition will also open up new markets and touch-points for MSC via our Process, Power & Marine division."
MSC will continue to operate as an independent business within the wider net of Hexagon’s corporate solutions. And it’s pretty clear to see why the acquisition is a sensible move: Hexagon hasn’t just bought a money-maker, it’s bought a company whose product offerings sit very comfortably alongside its own. Ultimately, this should help Hexagon push MSC through a number of doors that are already open to it from other business, and it should give the company a more holistic, end-to-end, service.
Dominic Gallello, president and CEO of MSC shed some light on his company’s future within the Hexagon family:
"Our mission continues to be laser-focused on driving leadership in simulation tools, with solutions from materials to systems. We will continue to work toward delivering breakthrough value to our customers. Although our mission and roadmap does not change, we anticipate that our ability to offer additional process oriented solutions from design to manufacturing will be enhanced by joining forces with Hexagon."
Dominion holds Hexagon in its Global Trends Managed Fund.
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