Monday, January 26, 2015

News: nCode set to grow through acquisition

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HBM nCode, the leading brand of fatigue and durability software, has confirmed the acquisition of ReliaSoft, an industry leader in reliability engineering software and services, through its parent organisation, Spectris plc.

Shortly after moving from Sheffield onto the Advanced Manufacturing Park (AMP) in Rotherham, nCode was acquired by German company, HBM in 2008, in a deal thought to be worth around £20m. HBM is a wholly-owned subsidiary company of Spectris plc, a group specialised in precision instrumentation and electronic controls.

With reports showing that 50-90% of all structural failures are due to fatigue failure, HBM nCode supplies leading names including General Motors, Chrysler, Bombardier and Lockheed Martin with technology and software products for durability and performance analyses.

Following completion of the latest deal, worth around £28m, Arizona-based ReliaSoft will be integrated with HBM nCode. The move is expected to strengthen HBM nCode's growing engineering software business and will build on the strong brand recognition and reputation of both ReliaSoft and HBM nCode. The business is also expected to benefit from the investment and global network that will come as being part of HBM nCode, which has sites in America, France and Germany.

Customer needs are growing for fatigue, reliability, failure data analysis and asset management software, and the combined offering will enable accelerated growth in current markets and facilitate growth in new markets. This covers oil and gas, chemical, food, machinery, medical, electronics, power plant, and pharmaceuticals. The combined entity will strengthen software sales, marketing and development expertise for both organisations on a global scale: combining two organisations having proven track records of selling "Commercial off the Shelf" (COTS) engineering software.

Brian Dabell who leads the management team of the combined organisation, said: "This is a strategic move for HBM nCode. There are many advantages to this initiative and the leadership team at HBM nCode has a strong interest in developing and investing in ReliaSoft's technology and its highly talented workforce. This will provide the opportunity for our organisation to accelerate growth and expansion into key international markets, delivering exceptional value to our customers."

Eoghan O'Lionaird, business group director at Spectris plc, added: "We believe there is a strong cultural fit with HBM nCode, and that the combined capabilities will create additional value for our customers as well as increasing HBM's resilient revenue stream. The acquisition is also in line with our strategy to grow existing businesses through acquisition, and fits the Spectris financial profile of attractive margins and strong cash generation."

HBM nCode website

Images: HBM nCode

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