French software company Dassault Systèmes announced Tuesday it has entered into a definitive agreement to buy Paso Robles-based software company IQMS for $425 million in cash.
According to a news release, Dassault acquired the local company to add its manufacturing software to the larger company’s 3DEXPERIENCE platform.
The purchase will alow Dassault to extend its 3D marketplace to small and midsize manufacturers, and “provide these manufacturers with an affordable system for operations that improves the collaboration, manufacturing efficiency and business agility needed to serve their customers successfully,” according to the release.
“IQMS has cultivated a deep knowledge of manufacturing and manufacturer needs,” Dassault Vice Chairman and CEO Bernard Charlès said in the release. “We welcome IQMS to our team as we create a new category of business solutions that expands our offer for companies similar to those using SOLIDWORKS. They can embrace the platform phenomenon and flourish in today’s industry renaissance.”
IQMS designs and develops planning and management software (ERP) and computerized manufacturing systems (MES) for the automotive, medical, packaging, consumer goods and other markets.
It was founded in Southern California by Randy and Nancy Flamm in 1989, before it moved to Paso Robles in 1995. The Flamms left the company in 2015, though Randy Flamm still serves as its chairman of the board.
In 2017, IQMS reported an annual revenue of $59.8 million and employed 315 people, according to previous Tribune reports.
The company has often been recognized as one of the fastest growing companies in the country. In August, it was ranked 4,794th on Inc. Magazine’s list of the 5,000 fastest growing businesses in the United States, marking its eighth appearance on the list.
“For years, our business has been committed to maximizing our manufacturing customers’ success by delivering a comprehensive manufacturing ERP system built specifically for the mid-market manufacturers and backed by extensive support and educational services,” IQMS President and CEO Gary Nemmers said in the release. “As part of Dassault Systèmes, we can take the next steps in providing customers with new approaches to achieving operational efficiency and effectiveness and doing so with a global reach.”
Completion of the transaction is still subject to antitrust approval. The transaction is expected to close in early 2019.