There is a direct correlation between the proliferation of augmented reality apps and the demand for 3D content, and PTC has quantified that only in dollars.
On Wednesday, the company committed $ 470 million to acquire Onshape, makers of computer-aided design, (CAD) software that has raised $ 150 million in financing and more than 5,000 subscribers since its establishment in 2012. Barclays advised PTC on the acquisition.
Onshape delivers its platform via the software as a (SaaS) model and gives PTC a recurring revenue stream in addition to its existing CAD offering, giving its customers easy to implement CAD capabilities and allowing users to access the software from anywhere any desktop or mobile device.
"Today we see small and medium-sized CAD customers in the fast-growing part of the CAD market shifting their interest to SaaS delivery models and we expect that the interest of larger customers will grow over time," Jim said. Heppelmann, president and CEO of PTC, in a statement. "The acquisition of Onshape complements our on-premise activities with the only proven, scalable, pure SaaS platform that we expect to offer new CAD and PLM growth opportunities and position PTC as the leader in the transition to the SaaS model. "
The software also includes data management and collaboration features that enable large teams of designers and developers to create content more efficiently. Think of it as Google Docs, where users can edit the same file live.
Onshape will work as a business unit within PTC, the same as Vuforia, the popular augmented reality platform that PTC acquired for Qualcomm in 2015 for $ 65 million.
"PTC has built a reputation for successfully pursuing new innovations that drive business growth," says Heppelmann.
Between Onshape and Vuforia, PTC can now provide the software for teams to build CAD-based 3D designs and content, as well as the tools for integrating that content into augmented reality experiences.
"When you think of our augmented reality platform Vuforia, and in particular parts of it like Vuforia Studio as we call it, it really is a 3D author and publicist. It's all about writing what is effective 3D webpage & # 39; s are, apart from their web forms, and then display them on the other side using computer vision against the real world, "said Heppelmann during an investment or webcast about the acquisition.
Although CAD has a different set of usage scenarios, especially in engineering and product design, outside of augmented reality compared to other content creation technologies, it is instrumental in making precise 3D models for AR experiences and markers for object recognition. And makers of AR experiences can benefit from the same data management functions as engineers and product designers.
"An important core component of Vuforia is the writing of 3D data and data management and collaboration and the process for doing so. There [are] huge synergies here between Vuforia, a 3D application that requires data management and collaboration, and Onshape , a 3D application with great data management and collaboration, "said Heppelmann. "We're going to quickly gain benefits in the world to bring Vuforia and Onshape closer together, and that will add some incredible opportunities to both brands, because Onshape will soon have great AR capabilities and Vuforia will soon have amazing data management and collaboration capabilities in have one seamless flow. "
Moreover, Onshape PTC and Vuforia give some extra foothold in the Magic Leap ecosystem. Onshape has adapted its CAD software for the Magic Leap One, allowing multiple users to collaborate on a 3D design in augmented reality. That means that if PTC Onshape starts to integrate with Vuforia, AR developers may have the ability to build the 3D content for their AR apps into AR.
Onshape is based in Cambridge, Massachusetts, founded by Jon Hirschtick, John McEleney, and Dave Corcoran, who assisted in the development and growth of another 3D CAD platform, Solidworks, which itself in 1997 by Dassault Systems was acquired for $ 310 million.
"At Onshape, we share PTC's vision to help organizations transform the way they develop products," said Jon Hirschtick, CEO and co-founder of Onshape (who also served as an adviser to Magic Leap and an old one) friend of Magic Leap CEO Rony Abovitz). "We and PTC believe that the product development industry is approaching the & # 39; tipping point & # 39; for SaaS acceptance of CAD and data management tools. We look forward to offering the customers we serve the latest innovations to improve their competitive position."
There has been a run in acquiring 3D content technology throughout 2019. Verizon recently picked up volumetric video provider Jaunt while Apple launched the motion capture company iKinema. Earlier this year, Adobe recorded 3D content software maker Allegorithmic, while Magic Leap made Mimesys and its 3D telepresence technology a part of its activities. In terms of investment, Matterport has closed a $ 48 million financing round for its 3D content capture technology.
PTC, however, has not only strengthened its CAD offering, but also created a new solution for efficiently building 3D content and augmented reality experiences together.