Intercad strengthens leadership with management buyout
10/02/2012 - SolidWorks solid modelling solutions supplier Intercad Pty Ltd has completed a management buyout and plans to introduce new services in 2012 as it further supports the manufacturing sectors in both countries.
"When you have confidence in something, you want to be a part of it. That’s what we’ve done with Intercad," said Max Piper, Chief Executive Officer, Intercad Pty Ltd.
Established 25 years ago, Intercad was sold by its founders to holding company Central Innovations Pty Ltd in 2006. That deal was backed by the ANZ Bank.
"The global financial crisis (GFC) has seen a drive in demand for solid modelling systems as designers and manufacturers sought to be more productive and competitive," said Piper. "Intercad has focussed on providing increased implementation, technical services and training. This strategic positioning has resulted in Intercad being able to maintain its position as the leading distributor of SolidWorks in the region and we continue to win market share from competitive products. For some time, we knew that the ANZ Bank planned to divest itself of its private equity holdings and when the opportunity arose to assume ownership of Intercad, we seized it."
Piper said the ANZ Bank’s decision to divest at this point reflected its positive assessment of Intercad’s strong business position. Intercad’s leadership of the 3D modelling software and services market as well as its robust and rapidly expanding client base were other key factors in the decision.
"If you look at our clients, you see a diverse range of outstanding names like Russell Mineral Equipment, Qantas, Fisher & Paykel and Triple 8 Racing Team Vodafone. You also see strong growth as new clients are added in sectors like education with Monash University," Piper said.
Intercad has seen significant growth in the education market with demand for SolidWorks-trained graduates being driven by commercial organisations.
"At one education institution for instance we’ve seen a doubling in demand for SolidWorks training in the last 12 months," said Piper.
While Piper cited macro-economic factors such as the increased competition from low cost regions like China creating challenges for local manufacturers, the sector was also facing the additional pressure of the strength of the Australian dollar and global economic volatility. Companies were responding by seeking ways to increasingly improve their productivity by, for example, further automating their businesses.
"Part of the story is that local manufacturing continues to show resilience and those manufacturers that have invested or will invest to lift capability are going to find themselves well-positioned to grow over the next twelve months," Piper said.
Piper also said SolidWorks’ position as a global leader in 3D modelling is complemented by Intercad’s role as a provider of choice for the industry and education sectors.
"Our role as a company is not merely to sell world-beating software," Piper said. "Frankly, you don’t increase manufacturing competitiveness if you’re not there for your clients before, during and after the sale. Intercad is thriving because software without access to best practice is only half the story, we are about enabling our customers and this means implementation, training, on-site support, online support, and remaining vigorous advocates of best practice adoption.
"Intercad stands at an inflection point," Piper said. "Manufacturing might be challenged in our region but these very challenges offer great opportunities. Essentially, our technology and the pre- and post-sales support we offer increase productivity and help automate as many processes as possible. This means a healthier bottom line for our clients whatever the market conditions."
Piper said Intercad was planning to roll out new services in 2012 in response to changing customer requirements as well as actively target new sectors in Australia and New Zealand.