Product lifecycle management provider Parametric Technology Corp. (PTC) announced on Wednesday that it will acquire privately held NC Graphics Ltd., a move that expands PTC's computer aided manufacturing (CAM) capabilities into the specialty area of high-speed precision machining.
NC Graphics sells software that optimizes tool-making and high-speed precision machining processes in discrete manufacturing markets, including automotive, aerospace, and medical equipment. The deal, which officials say is valued at less than $10 million, broadens PTC's design product suite and aligns the company closely with the needs of toolmakers, 65% of which are small or mid-size businesses, PTC officials said.
Plans call for NC Graphics' DEPOCAM product to be rebranded as Pro/TOOLMAKER during the next quarter. Longer term, PTC will integrate Pro/TOOLMAKER into its Pro/ENGINEER 3D design offering. Pro/ENGINEER includes computer-aided design (CAD), computer-aided engineer (CAE), and CAM capabilities. The existing CAM software addresses production machining, but does not offer functionality specific to mold and die manufacturers, a hole that NC Graphics fills.
"You could use our solution today for these applications, but it is not purpose-built for high-speed precision machining capability," said Sandy Joung, PTC's director of product marketing for Pro/ENGINEER and Mathcad products. The addition of Pro/TOOLMAKER provides a tailor-made solution for the market, she told Managing Automation. Moreover, the product is already in use at 1,500 NC Graphics customers.
PTC and NC Graphics share some customers in large accounts, including Toyota and Fujitsu, but PTC officials said this was an opportunity for PTC to penetrate the smaller mold shops looking for an all-in-one, Windows-based product that ties CAD and CAM together seamlessly.
"The global economy is intensely competitive, and the design and manufacturing of mold and die tools is typically on the critical path of a new product introduction cycle," said James Heppelmann, PTC's executive vice president of software products and chief product officer, in a statement. "This acquisition allows customers to work more effectively with their outsourced toolmaker partners by connecting customer CAD data with the toolmaker's CAM system."
A digitized design that can be converted to a program that runs the manufacturing tools allows companies to deliver more complex products faster and often at less cost.
"This product is fast in terms of execution speed," Joung said. "It is multi-threaded to improve productivity. While you are creating a machining program and calculating it in the background, you can be doing other things in the application, like starting new jobs or working on multiple designs."
The NC Graphics acquisition fits into PTC's strategy of expanding its manufacturing capabilities. As it moves toward its goal of becoming a $1 billion company by the end of next fiscal year — a goal that appears within reach — PTC saw an opportunity to fill out its product portfolio.
"We've seen demand for this [type of product] for a number of years, and we've been looking for the right acquisition," Joung said. "Also, putting it in the context of our portfolio and [customer] needs, the value proposition for PTC is that once we've acquired a product, we make sure it integrates with ... our portfolio so that we don't have a collection of point solutions."
Joung declined to reveal an integration roadmap, saying only that the first integration will be with Pro/ENGINEER, with other PTC applications to follow.