Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance

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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 JonesVice President, Corum Group

Moderator

Agenda• Introduction• Manufacturing Software M&A Trend Report• Panel Discussion

• Allan Wilson• Joe Barkai• Peggy Smedley

• Attributes of Valuable Manufacturing Software Acquisitions

• Q&A

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…

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 KhodamoradiResearch Analyst, Corum Group

Manufacturing Tech M&A Activity(2013 H1-2016 H1)

H1 H2 H1 H2 H1 H2 H12013 2013 2014 2014 2015 2015 2016

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Deal Value ($B) Deal CountSource: 451 Research

Top Acquirers by Volume (2013-YTD)

Dassault Accenture Autodesk Electronics Hexagon App Soft Rockwell PTC 3D E2open0

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Source: 451 Research



1

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6Sold 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




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6Sold 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




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6Sold 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




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6Sold 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




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6Sold 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.




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6Sold 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.




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6Sold 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.




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6Sold 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.




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6Sold to

Target: Kepware Inc. [USA]Acquirer: PTC [USA]Transaction value: $100M, 5x Revenue

‒ Provides communication drivers connectivity software for use in industrial automation applications




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6Sold 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.




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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.


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.



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.



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.


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


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


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<2x 2-4x >4x

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EV/S Multiples


Breakout

Commercial Execution

Commodity

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 WilsonVice President, Corum Group

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 SmedleyFounder, Peggy Smedley Institute

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 BarkaiAuthor, The Outcome Economy and the Internet of Things

http://www.joebarkai.com/

Panel Discussion

Allan WilsonVice President, Corum Group

Peggy SmedleyFounder, Peggy Smedley Institute

Joe BarkaiAuthor, The Outcome Economy

and the Internet of Things

Attributes of Valuable Manufacturing Software

Acquisitions1. Leverage one or more key tech trends

• AI, IoT, Security, etc.2. Focus on the “content, not the conduit”

• Connectivity, etc. becoming commoditized3. Demonstrate outcome-based successes

• Show clear ROI in specific use cases for customers4. For products – leverage the ecosystems

• The sector is hot, don’t try to do it all yourself5. For services – keep focus

• Avoid the temptation to do everything for anyone

Q&AWe 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

Contact UsFor further information or copies of today’s presentation:

Visit www.wfs.comor

Email Steve Jones: [email protected]

Allan Wilson: [email protected]

Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance

Technology

Transcript of Offshore to Onshore: The role of software technology in the US Manufacturing Renaissance