Onshape Dwarfs Other PTC Acquisitions
PTC’s buy and build strategy continues with the completion of its acquisition of product development platform provider Onshape for US$470 million.
Not only is Onshape PTC’s largest acquisition to date (previous acquisitions have been around US$100 million), it also cements the firm’s shift away from the perpetual licensing model and enables the firm to target the Small and Medium-sized Business (SMB) segment. Onshape is testament to the SMB segment’s acceptance of Software-as-a-Service (SaaS) solutions for Computer-Aided Design (CAD) and Product Lifecycle Management (PLM), but the enterprise segment remains wedded to on-premise solutions for the time being. With its acquisition of Onshape, PTC will be able to offer enterprise customers both types of solutions as SaaS-based applications gain traction, which ensures that PTC won’t be left only offering obsolete technologies. PTC’s results going forward will be worth monitoring as an indicator of large manufacturers’ appetites toward new technology delivery models.
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