Phoenix Business Journal: ​Is acquiring disruptive innovation good for everyone?

It seems like the trend these days is for large companies to not do R&D in house. Instead the let StartUps develop innovation and then buy it when the market proves it out.  I had to ask myself “​Is acquiring disruptive innovation good for everyone?”  I don’t think it is and explain why in this week’s blog post.

Press Release: PADT Acquires Stratasys Business from CADCAM Systems

PADT_Logo_Color_100x50At the beginning of this month, CADCAM Systems agreed to sell their Stratasys 3D Printer sales and support business to PADT.  With customers in Colorado, New Mexico, and Utah this acquisition will increase PADT’s presence and investment in those states. This is PADT’s first acquisition in our 21 year history and we are very excited about the whole thing.  If you have worked with us in the past you know we are all about win-win situations.  We feel that this move will be a win for our customers, CADCAM System’s customers, and Stratasys.

We would like to begin by welcoming all of CADCAM System’s customers to the PADT family. Over the coming months we will be working to get to know you and to show you the variety of products and services that PADT offers.  although a few of you are already customers for other things PADT does, we really look forward to meeting the rest of you and understanding how we can help you bring your products to market better and faster.

Secondly, we want to let our existing customers know that this will give us additional customers and revenue that we  will use to fund expanded services in Utah, Colorado, and New Mexico.  Once we have time to get a feel where these new customers are and what they need, we will plan our sales and support staff to better serve everyone. A larger and stronger community will be one of the key ways this will be a win-win for everyone.

You can read more about the acquisition in the press release below or view a PDF version here.

The new customers will grow PADT’s customer base for 3D Printing systems by around 20% to 40%  depending on how you count things. About half of the new customers are in Colorado and the rest are split between Utah and New Mexico; with a few single customers in other states in the west.  Our staff in those states (Littleton, CO, Albuquerque, NM, and Murray, UT) have already started reaching out to the new customers.  As an example of our growing commitment, we recently moved to a new larger suite in the Utah office to make room for a new Application Engineer, more demo machines, and additional space for training and meetings.

We are usually pretty bad about documenting these things for posterity, but fortunately someone remember to snap a picture on their phone during the signing.  From left to right are Ward Rand (PADT Co-Owner), Gloria Ontiveros (CADCAM Co-Owner), John D. Clark (PADT’s Council), and Mario Vargas (PADT’s Sales Manager for 3D Printing):

Official-Signing-CADCAM-Acquisition

 

Customers who have existing support contracts with CADCAM Systems, will continue to be supported by them until those contract expire, including the purchase of their consumables and materials.  When the contracts are up for renewal, they have the option to renew with PADT and we will be the source for their consumables and materials.  Customers who are not on maintenance can contact PADT now for support:

Repair and Maintenance:  480.813.4884 or 3dps@padtinc.com

Those who wish to purchase material and consumables can do so over the phone, via email, or at our online store: padtmarket.com.

Material: 480.813.4884, sales@padtmarket.com, or www.padtmarket.com.

This is an exciting time and we look forward to the growth and mutual success that this acquisition will bring.

Press Release:

PADT Expands 3D Printer Activities with Acquisition of the Stratasys Reselling Business of CADCAM Systems

Strategic move positions PADT as the largest provider of industrial 3D Printing solutions in the Four Corners region.

Tempe, Ariz., May 13, 2015 Phoenix Analysis & Design Technologies, Inc. (PADT) the Southwest’s largest provider of Numerical Simulation, Product Development, and 3D Printing services and products, is pleased to announce the acquisition of the Stratasys Reseller business of CADCAM Systems, based in Boulder Colorado. This move immediately boosts PADT’s existing 3D Printer sales and support customer base by approximately 30%, adding clients in Colorado, Utah, and New Mexico, making PADT the largest distributor of 3D Printing systems to commercial customers in the Four Corners region.

PR-Stratasys_profesional_serires-1

CADCAM Systems, like PADT, has been a leader in 3D Printing sales and support, working with global manufacturer Stratasys to help build usage in the Rocky Mountain States. Throughout the course of its history, CADCAM Systems has built a reputation for outstanding technical ability and customer service. As customers transition to PADT for system support, consumables and future machines, they will receive the same exceptional service they are used to, now from PADT’s offices in Littleton, Colorado, Murray, Utah, and Albuquerque, New Mexico. Additional support will come from PADT’s headquarters in Tempe, Arizona. Customers will have the added advantage of access to PADT’s other products and services, including 3D Printing services, ANSYS simulation software, product development, and simulation services.

“When we heard that CADCAM Systems was interested in selling their Stratasys business, we were immediately interested. Said Rey Chu, co-owner at PADT and a recognized expert in the Additive Manufacturing industry. “We knew they took excellent care of their customers and had strong client bases in Colorado, New Mexico, and Utah, three states that we’ve been growing aggressively in. It was an obvious fit for both companies.”

The acquisition will have no impact on the number of people employed at either company. During the transition, customers who purchased maintenance agreements from CADCAM Systems will be serviced by them until they expire, at which time they have the option to renew with PADT. Some 3D Printing material supplies will be available from CADCAM Systems as well during the transition, with PADT taking over that service in the coming months.

This acquisition was made as part of PADT’s long term strategy to strengthen their position as the premier supplier of mechanical engineering products and services in the Southwest. The company continues to make investments in staff, services offered, and products represented to meet the demands of existing and future customers, continuing to prove a commitment to the company’s motto “We Make Innovation Work.”

To learn more about this exciting expansion visit http://www.padtinc.com/cadcam, email sales@padtinc.com or call 480.813.4884.

About Phoenix Analysis and Design Technologies
Phoenix Analysis and Design Technologies, Inc. (PADT) is an engineering product and services company that focuses on helping customers who develop physical products by providing Numerical Simulation, Product Development, and Rapid Prototyping solutions. PADT’s worldwide reputation for technical excellence and experienced staff is based on its proven record of building long term win-win partnerships with vendors and customers. Since its establishment in 1994, companies have relied on PADT because “We Make Innovation Work.” With over 75 employees, PADT services customers from its headquarters at the Arizona State University Research Park in Tempe, Arizona, and from offices in Littleton, Colorado, Albuquerque, New Mexico, and Murray, Utah, as well as through staff members located around the country. More information on PADT can be found at http://www.PADTINC.com.

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ANSYS Acquires SpaceClaim


Big news this morning in the ANSYS world: ANSYS, Inc. has acquired SpaceClaim, makers of a very powerful 3D Solid Modeling tool that has been an add-on for ANSYS products for some time.

Here is the official press release: 

finance.yahoo.com/news/ansys-acquires-spaceclaim-corporation-leading-111400173.html

Here at PADT we have been long time users of the SpaceClaim products, and big fans. This will certainly secure the focus of the SpaceClaim development team on continuing their work on providing simulation users with the tools they need to create, modify, and add intelligence to their geometry.  The debate of DesignModeler vs. SpaceClaim seems to be settled!

This is a great technology fit, and there seem to be some nice business advantages as well.