Today, in what I consider a surprising move, French PLM and CAD vendor Dassault Systèmes announced the acquisition of French enterprise search vendor Exalead for €135M or, according to my calculator, $161M. Here is my quick take on the deal: While I don’t have precise revenue figures, my guess is that Exalead was aiming at around $25M in 2010 revenues, putting the price/sales multiple at 6.4x current-year sales, which strikes me as pretty good given what I’m guessing is around a 25% growth rate. ( This source says $21M in software revenue, though the year is unclear and it’s not clear if software means software-license or software-related. This source , which I view as quite reliable, says $22.7M in total revenue in 2009 and implies around 25% growth. Wikipedia says €15.5M in 2008 revenues, which equals exactly $22.7M at the average exchange rate. This French site says €12.5M in 2008 revenues. The Qualis press release — presumably an excellent source — says €14M ($19.5M) in 2009 revenues. Such is the nature of detective work.) I am surprised that Dassault would be interested in search-based applications, Exalead’s latest focus. While PLM vendors have always had an interest in content delivery and life-cycle documentation (e.g., a repair person entering feedback on documentation that directly feeds into future product requirements) , I’d think they want to buy a more enterprise techpubs / DITA vendor than a search vendor to do so as in the PTC / Arbortext deal of 2005. Nevertheless, Dassault President and CEO Bernard Charlès said that with Exalead they could build “a new class of search-based applications for collaborative communities.” There is more information, including a fairly cryptic video which purports to explain the deal, on a Dassault micro-site devoted to the Exalead acquisition , which ends with the phrase: search-based applications for lifelike experience. Your guess as to what that means is as good as mine. I think those who position Exalead as “ France’s Google ” are misguided. Exalead was very clearly an enterprise software company that used its Internet search site as a demo of its capabilities, much as DEC long ago used AltaVista as a demo of the Alpha chip or Vivisimo (until the recent sale to Yippy) used Clusty as a demo of its clustering technology, or for that matter, as MarkLogic uses MarkMail as a demo of our XML server . In there ever was a European attempt at Google, it was Quaero , which I always viewed as the Airbus of search
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Quick Take on the Dassault Systèmes Acquisition of Exalead