PTC acquires Arena Solutions
The move to SaaS is clear – Integration with existing solutions is uncertain
December 14, 2020, PTC announced that it has signed a definitive agreement to acquire Arena Solutions, Inc..
The move to SaaS is inevitable in the PLM industry. Rather than a migration from existing solutions, it needs to be seen as another new framework.
PTC will acquire Arena Solutions for $715 million in cash. Subject to customary closing conditions and completion of regulatory review, the acquisition is expected to be completed in PTC’s fiscal Q2 2021.
Founded in 2000, Arena Solutions is one of the early cloud-native PLM product providers, serving more than 1,200 customers in the electronics, high-tech and medical device industries, and is expected to end calendar year 2020 with approximately $50 million in annualized recurring revenue, reflecting double-digit growth over 2019.
Jim Heppelmann, President and CEO of PTC, said
“This acquisition is the logical next step in PTC’s strategy to be the industrial SaaS leader,” “A big first step was the acquisition of Onshape, the SaaS leader in CAD and collaborative design capabilities. Arena will enable us to round out the solution with full PLM capabilities and deliver the only complete CAD + PLM SaaS solution in the industry.”
PTC to Acquire SaaS PLM Leader Arena Solutions
How does it relate to existing PTC solutions?
Recently, PTC has been increasing its focus on SaaS, and this announcement emphasizes the integration with the acquired CAD solution Onshape.
What does this mean for traditional PTC users?
Previously, PTC had stated that there were no plans to integrate Creo and Onshape.
On their WEB about this acquisition, they mentioned only as,
“PTC remains committed to bringing the benefits of SaaS to its existing customers. We expect to bring existing Creo CAD software and Windchill PLM software customers to the SaaS world in a fully compatible way leveraging our Atlas™ SaaS Platform.”
These will be revealed in more detail at the press conference scheduled in the coming days.
As analysts view, CIMdata states as follows.
“the acquisition of Arena effectively complements their SaaS program and will enable PTC to extend their presence in mid-market companies, where SaaS solutions are becoming the standard. “
PTC Announces Agreement to Acquire Arena Solutions (Highlight)
Transformation through disruptive technologies always comes from a place where existing solutions are not replaced as it is. It will be interesting to see what PTC does in the future.
