Autodesk Maya? Autodesk to Acquire Alias

Updated with coverage of Autodesk-Alias joint press conference

After the market close today, Autodesk announced an agreement to acquire Alias for $182 million dollars in cash. Obviously, there are a ton more questions than answers right now, but the fact that Maya is going to be a part of the same company that produces 3DS Max is quite interesting. And now maybe we’ll see Maya camera import in flame….

Coverage of Autodesk/Alias Press Conference

Autodesk commented on how strong position – growth in non-entertainment industries, etc. Autodesk states Alias is the leading suppiler of 3D animation and visualisation.

Doug Walker, president and CEO of Alias, spoke of the benefits of the deal, pointing to the $300US million in Autodesk R&D. Alias has 600 employees and last year had $83 Million in revenue areas such as entertainment and other industries such as Automotive. He expects faster development as well as feels as though Alias amplifies Autodesk’s Media presence, pointing to the strength the software has in companies already owning products such as Flame. It will also ehance Autodesk’s presence in the automotive industry. The consumer and automotive product category is a 2 billion dollar market

It will take 4 to 6 months to close the deal, with no expected changes in the short term over product releases.

Regarding product unifcations, the panel suggested that they will initally focus on integration and inter-application operability. They were asked about the long term vision of the products, and again the answer was that Autodesk wants to maintain the separate product lines but increase connectivity.

No indication was given of staff layoffs, as the companies combine. In fact, the development staffs will remain intact until the next release.

It was indicated that Alias would be divided into the various matching divisions – so part of Alias would be in Autodesk Media & Entertainment as well as other divisions. Autodesk will keep people where they are in the short term.

The panel was asked about branding and it was said that the Maya name would continue. This was highlighted by a later question pointing to the changing of the Discreet name, by Autodesk.

One of the ideas is that more integration between design, visualisation, CAD world and the reusing them in entertainment and/or for marketing reuse.

The main point that came through was the believe that the key to the deal was having both companies products speak to each other and share data and metadata. Not just between Maya and Max, but also between industries such as a closer link between separate industries.

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aliasautodesk/bass_walker

Autodesk interestingly did not buy Alias just 18 months ago, when Alias was acquired by its current owners Accel-KKR and the Ontario Teacher’s Pension Plan, Autodesk was at that time doings its own major internal restructing and Autodesk “felt that an acquisition would defocus it from those critical improvements to its business model”. The price for Alias 18 months ago is understood to have been around $57 million. The price announced today is $182 million in cash.

A combined integration team will oversee the integration process, including employees from Autodesk’s manufacturing and M&E and consulting divisions has been formed. All Alias and Autodesk support of customers will continue unchanged, it is worth noting it will be months before the deal is finalised anyway. This allows time for the customary legal and regulatory approvals to take place.

This now gives Autodesk a Macintosh 3D development space. The company has never had 3DMax as an OSX product and with Apple moving to Intel, Autodesk has a major product in the Apple creative professional product area.

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Join the discussion forum here on effects guide to talk about the aquisition.

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Autodesk has devoted a section of their website to the acquisition. The press release follows:

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Autodesk, Inc. (Nasdaq: ADSK – News) today announced that it has signed a definitive agreement to acquire Alias�, a privately held developer of 3D graphics technology, for $182 million in cash. This acquisition will grow Autodesk’s expertise and offerings for the design of consumer products and automotive, as well as in the media and entertainment markets. Autodesk anticipates that the transaction will close within the next four to six months.

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

Founded as Alias Research in 1983, Alias is headquartered in Toronto, Canada. Alias customers are some of the world’s premier entertainment and manufacturing companies, including Industrial Light & Magic, DreamWorks SKG, Nintendo, General Motors and BMW. Alias revenues were $83 million in the fiscal year ended June 30, 2005.

Alias’ product lines comprise sketching, animation, visual effects, design, modeling, rendering and reviewing solutions. Alias MotionBuilder� is Alias’ 3D character animation product, Alias FBX� is widely used in the exchange and use of 3D content, and Maya � is the company’s Academy Award-winning 3D application. These products will augment Autodesk’s offering in the film and video and interactive games segments. Alias StudioTools(TM) — software for design tasks from 2D sketches to production models — will add industrial design and high-end visualization capabilities to Autodesk’s manufacturing solutions. Autodesk will continue to develop the Alias product lines in conjunction with Autodesk’s complementary products and technologies.

“This acquisition is designed to leverage the strengths of both companies,” stated Doug Walker, president and CEO of Alias. “Alias’ customers will benefit from nearly $300 million in R&D spending while having access to new and complementary 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.”

The acquisition is subject to a number of closing conditions, including regulatory approval. Targeted non-GAAP EPS for this transaction, which excludes in-process R&D expenses, acquisition-related restructuring costs, equity-based compensation expenses, and the reduction of deferred revenues assumed by Autodesk as required by US GAAP, is expected to be slightly accretive to earnings in fiscal 2007. Autodesk is currently unable to provide estimates of the future impact of this transaction on GAAP earnings per share. Absent the impact of the acquisition, Autodesk has not changed any of its previously issued guidance.