Cranes Software acquires leading CAE software player, EMRC
Highly synergistic acquisition will further extend coverage of global engineering community and augment addressable opportunity in existing domains
Bangalore, May 23, 2005:
Cranes Software International Ltd., a global scientific and engineering software solutions provider, has announced acquisition of Engineering Mechanics Research Corporation (EMRC) in India with its customers, brand names, trademarks, ongoing contracts, personnel and fixed assets. EMRC is the developer of NISA suite of products and a pioneer in the field of Computer Aided Engineering(CAE). The Company provides consulting services and customised software in this domain.
This acquisition will immediately give access to Cranes Software to diversify into an expanded market in the scientific and engineering software specifically in the Engineering Services domain. The consideration for this acquisition is part of a deal of US $ 1.5 million including the US arm of the EMRC operation, currently waiting some statutory clearances in US
Announcing the acquisition, Asif Khader, Managing Director, Cranes Software International said, "EMRC provides comprehensive capabilities in the computer aided engineering (CAE) space with high quality products suite, many years of product experience and extensive global usage backed by a worldwide sales and support organization. Its acquisition is in line with our strategy of purchasing undervalued assets that provide substantial growth potential by leveraging our existing strengths and capabilities. With this acquisition, we have now addressed the vast potential of the mechanical, civil, automobile, aerospace and electrical engineering market, thereby extending the range of software that we take to engineers globally."
Details of the acquisition
The EMRC businesses operate under the brand umbrella of NISA family offering a wide range of applications structured around the Finite Element Analysis program. Apart from the products sales EMRC also offers consulting and customization solutions to its clients in India and worldwide. In India EMRC has a total manpower strength of 40. The team comprise of well known scientists combined with highly skilled technology architects and software engineers developing products andproviding solutions projects for customers globally. The Indian company, Engineering Mechanics & Research (India) Pvt. Ltd., has its branch offices in Delhi, Trivandrum, Pune and a development center along with a sales office in Bangalore.
NISA product details
The NISA family of programs is one of the most comprehensive suites available globally with identical capabilities on PCs, workstations and supercomputers. NISA provides a modular interface in the specific areas of domain focus - it has around 12 modular versions addressing a wide spectrum of applications in the areas of mechanical, civil, automobile, aerospace and electrical engineering. The most significant features of NISA family of programs are: comprehensive analysis capability spanning solids/ fluid/ heat/ electro-magnetics; completely integrated single pre/ post-processor user interface; seamless interoperability with other leading programs; excellent technical support and flexible purchase options - all available at one of the best price/ performance in the industry.
Addressable market domain
FEA is one of the techniques for computer simulation of the response of physical systems and forms a part of the larger domain of CAE, which is at the core of most of the modern engineering industries.
NISA finds usage in an extensive range of industries including automotive, auto components, aerospace, industrial products, consumer products, civil construction and power generation. Overall its addressable market size is around US$ 1 billion that is growing at over 10% annually.
The global FEA market has only a few players with the ability to offer total solutions covering the entire product life-cycle. Growth for such players has consistently been at the higher end of the growth spectrum within this industry.
Cranes Software's acquisition strategy
With this acquisition the Cranes Software will enter into a new business vertical within the scientific and engineering space i.e. engineering services market. Apart from the revenues that could be generated out of selling EMRC products and solutions to this domain; the Cranes Software management believes that there is significant potential to target this vertical with its previously acquired analytical and data visualisation tools. Currently EMRC has an established global base of over 5000 active users with significant brand awareness in the Finite Element Analysis marketplace of which around 500 users would be in India alone.
Internationally, the probability of success in the technical software domains has been higher for players focusing on implementation of proven technologies, as scientists and engineers tend to show strong brand loyalties and long-term usage patterns.
Cranes Software has adopted an 'acquire, enhance, expand' strategy that focuses on acquiring well-established software brands, and thereafter effecting continuous enhancements to maintain their cutting edge and leveraging a global sales network to reach the user base with effectiveness and impact. Following each acquisition, Cranes Software's dedicated team of researchers has evolved a defined roadmap for the products. New versions have been launched creating greater demand-pull from existing and new users. Cranes Software plans to do the same with the NISA range of products.
About Cranes Software International Ltd. (CSIL)
Cranes Software is a global scientific & engineering products and solutions provider. The Company's business interests straddle products, services, R&D in future technologies, training and high-end consultancy for engineers and scientist worldwide. Focused on the scientific and engineering community, Cranes Software has addressed the needs of a variety of customer groups ranging from large MNCs to the US armed force for over a decade.
Today, Cranes Software has its presence in 38 countries across the world and has a customer base of more than 350,000. Cranes Software also offers world-renowned solutions from reputed principals such as The Mathworks, Mentor Graphics, Texas Instruments, IBM and Lanner through product alliances.
With a mission statement to provide its customers the best in scientific technology and to enable its customers to define new limits, Cranes Software is setting new standards in the scientific and engineering field.
For further information on the company, its products and services please log on to www.cranessoftware.com
About Engineering Mechanics Research Corporation
Engineering Mechanics Research Corporation (EMRC) was founded in 1973 as a consulting firm involved in the solution of structural design problems as well as the development of design analysis software. It soon became a leader in the field of computer aided engineering.Over two decades later, EMRC continues to provide innovative finite element programs and engineering services.
Today, EMRC is an international center for engineering and computer technology in Troy, Michigan, USA and a Subsidiary Company in India. The diligent efforts of EMRC's scientific, engineering, and analytical specialists have produced one of the most powerful families of computer aided engineering programs for finite element modeling and analysis.
Certain statements in this release concerning our growth prospects are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including government actions; local political or economic developments; technological risks; risks inherent in the company's growth strategy; dependence on certain clients; dependence on availability of technical consultants and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
For further information, please contact :
Contact : Akila Lean
(Cranes Software International Limited)
Phone : +91 80 25201604 / 5 / 6
Fax: +91 80 25201626
E-mail :
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Contact : Niranjan Krishnappa
Genesis PR, Bangalore
Phone : +91 80 2558 9122 / 3
E-mail :
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