Autodesk sets its sights on Alias acquisition

Autodesk has signed a definitive agreement to acquire Alias for USD 182 million in cash, anticipating the completion of the deal in as little as four to six months time.

On a dedicated website detailing the company's plans, 3D studio Max creators claim that the proposed acquisition will "grow Autodeskâs expertise and offerings in the film and video, interactive games, media, Web, consumer products, industrial design, automotive, architecture and visualization markets."

Carl Bass, COO of Autodesk states: "This acquisition brings to Autodesk a highly talented group of individuals, a wealth of technologies and a great set of products. Alias' technology spans several of our most important markets and augments the synergy between our design and media businesses."

Products and services from both companies are used heavily for game development and animation throughout the videogames industry, by companies including Nintendo, SEGA, Ubisoft and Electronic Arts, to name but a few. Alias' StudioTools software has been used by almost every automotive manufacturer in the world; several award winning car designs were created using StudioTools.

Alias' revenue for the fiscal year ending 30th June 2005 was USD 83 million. Autodesk's revenue figures showed USD 1.234 billion for the period ending 31 January 2005. Autodesk intends to merge the two technologies and pool company expertise to better serve clients in the games, film and automotive design sectors.

Bass commented: "Our design customers are demanding more powerful visualization, animation and publishing capabilities. Our media and entertainment customers are increasingly using the data created by our design applications for broadcast, film and games projects. By combining the technology and talents of our two companies, we will be better able to continue delivering solutions that address our customers' complex needs."

Doug Walker, president and CEO of Alias, said: "This acquisition is designed to leverage the strengths of both companies. Alias customers will benefit from nearly USD 300 million in Research and Development spending while having access to new and complimentary products and technologies. Together, Autodesk and Alias will deliver products and services that give form to great ideas from the fantasy world of film, to the factory floor."

Autodesk has confirmed its intention to continue to develop Alias product lines in conjunction with its own products, although some merging and cross over of product lines in the future would be expected. The acquisition deal still has some hurdles to face in the coming months, including regulatory approval.