French computer-aided design and engineering software house Dassault Systèmes has bought IBM's Product Lifecycle Management (PLM) business for $600m as part of a global long-term alliance, the companies said today.
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Al Bunshaft, IBM's PLM global vice-president, will now run Dassault Systèmes' Americas organisation.
The $600m deal transfers IBM PLM customer contracts and related assets, including 700 staff to Dassault Systèmes.
The French company's clients get a strong, unified go-to-market model that covers the entire Dassault Systèmes portfolio, including R&D, sales and support, in a move that "streamlines customer engagement", the companies said.
But IBM is not getting out of the PLM business. "This transaction helps fuel IBM's focus on PLM integration through middleware, business transformation and application services and dynamic infrastructure," the companies said in a statement.
Bunshaft said, "By tapping into Dassault Systèmes' new 3D and PLM collaborative technologies and IBM's expertise in enterprise integration and services, companies will find it easier to incorporate PLM into a core set of applications required for business success."
IBM and Dassault Systèmes have a 25-year track record together. They say they will continue to invest jointly in developing, deploying and supporting client PLM environments.
"Both companies are dedicated to strengthening and extending their co-operation in the areas of professional services, cloud computing, middleware, flexible financing, hardware, and sales and distribution," they said.