Cranes Software expands presence in engineering design, acquires EMRC U.S. operations
Acquisition expected to expand Cranes’ reach in U.S. markets and
strengthen its existing U.S. operations
Cranes Software International Ltd., a global scientific and engineering software solutions provider, has announced the completion of its acquisition of Engineering Mechanics Research Corporation’s (EMRC) U.S. operations. This acquisition is channelised through a Wholly – owned subsidiary, NISA Software Inc., incorporated by Cranes in Michigan, USA. This development follows the Company’s announcement in May last year of the acquisition of EMRC’s domestic operations. EMRC is a leading CAE software player and the developer of NISA suite of products. It also provides consulting services and customised software in the engineering services domain.
Cranes has already leveraged EMRC India’s acquisition to structure complex solution capabilities in the CAE space. Cranes has agreed to pay a total consideration of US$ 1.5 million for EMRC, including its operations in India. Acquisition of the U.S. operations had been pending on account of statutory approvals.
Announcing the acquisition, Asif Khader, Managing Director, Cranes Software International said,
This acquisition is an opportunity for us to leverage EMRC’s extensive expertise in the domain of finite elements analysis and related engineering services and use its worldwide sales and support organization network to service a wider base of customers. We believe that there is significant potential to target engineering and related services to a large number of verticals combined with Cranes’ previously acquired analytical and data visualisation tools.
Details of the acquisition
In May 2005, Cranes acquired EMRC in India along with its customers, brand names, trademarks, ongoing contracts, personnel and fixed assets. This acquisition marked Cranes’ foray into the Engineering Services activity within the scientific and engineering space.
EMRC’s flagship product range, NISA finds usage in an extensive range of industries including automotive, auto components, aerospace, industrial products, consumer products, civil construction and power generation. Overall its addressable market size is around US$ 1 billion that is growing at over 10% annually. Apart from the products sales EMRC also offers consulting and customization solutions to its clients in India and worldwide. The NISA suite comprises a wide range of applications structured around the Finite Element Analysis program.
The global Finite Element Analysis market has only a few players with the ability to offer total solutions covering the entire product life cycle. Growth for such players has consistently been at the higher end of the growth spectrum within this industry.
Currently EMRC has an established global base of over 5000 active users with significant brand awareness in the Finite Element Analysis marketplace of which around 500 users would be in India alone.
Cranes’ successful implementation of its ‘acquire, enhance, expand’ strategy has been key to its success in the scientific and engineering space over the last five years. The Company’s management team believes that they will be able to optimise EMRC’s potential to effectively expand reach target audiences globally and thereby deepen domain focus.
Cranes Software is a global scientific & engineering products and solutions provider. The Company's business interests straddle products, services, RD in future technologies, training and high-end consultancy for engineers and scientist worldwide. Focused on the scientific and engineering community, Cranes Software has addressed the needs of a variety of customer groups ranging from large multinational companies to government, defence, educational and research institutions for over a decade.
Today, Cranes Software has its presence in 33 countries across the world and has a user base of more than 360,000. Cranes Software also offers world-renowned solutions from reputed principals such as The Mathworks, Texas Instruments, IBM through product alliances.
With a mission statement to provide its customers the best in scientific technology and to enable its customers to define new limits, Cranes Software is setting new standards in the scientific and engineering field.
For further information on the company, please visit www.cranessoftware.com
About Engineering Mechanics Research Corporation
Engineering Mechanics Research Corporation (EMRC) was founded in 1973 as a consulting firm involved in the solution of structural design problems as well as the development of design analysis software. It soon became a leader in the field of computer-aided engineering.
Over three decades later, EMRC continues to provide innovative finite element programs and engineering services.
Today, EMRC is an international center for engineering and computer technology in Troy, Michigan, USA; its subsidiary Company in India was sold some months ago to Cranes. The diligent efforts of EMRC's scientific, engineering, and analytical specialists have produced one of the most powerful families of computer aided engineering programs for finite element modeling and analysis.
Certain statements in this release concerning our growth prospects are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including government actions; local political or economic developments; technological risks; risks inherent in the Company's growth strategy; dependence on certain clients; dependence on availability of technical consultants and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
This acquisition is an opportunity for us to leverage EMRC’s extensive expertise in the domain of finite elements analysis and related engineering services and use its worldwide sales and support organization network to service a wider base of customers. We believe that there is significant potential to target engineering and related services to a large number of verticals combined with Cranes’ previously acquired analytical and data visualisation tools. 
