HFS Highlight: Atos acquires Processia to bolster its PLM and Industry 4.0 capability

In April 2021, Atos announced the acquisition of Processia, Canada-based PLM (Product Lifecycle Management) system integrator, and Dassault Systèmes Global Service Partner (also awarded top certified partner status in 2020 to pursue excellence and continuous talent development). Processia has 250+ professionals in Belgium, Canada, France, India, the Netherlands, the UK, and the US. Atos aims to strengthen its digital engineering and manufacturing capabilities to support client manufacturing transformation with this acquisition.

Atos started its acquisition spree to expand its digital, cloud, security, and decarbonization capability mid of last year, resulting in the acquisition of 7 firms in 2020 and has acquired five firms in 2021.

PLM has become a critical part of digital manufacturing and engineering. And Atos continues to augment its PLM expertise through targeted acquisitions

As Industry 4.0 has been increasing, the digitalization needs across different manufacturing activities and processes are also rising. Since Industry 4.0 is now viewed as integrated manufacturing (PLM-MES-ERP integration), manufacturers increasingly use PLM to digitalize the product development process. PLM plays a significant role in manufacturing transformation as digital product data is vital for product development, design, and broader manufacturing operations. In addition, the growing importance of digital twins with simulation models has made PLM essential to manufacturers.

Atos already has strong capability in PLM services. Besides in-house capability, it acquired the majority of its PLM expertise from targeted acquisitions. In 2011, it acquired Siemens IT Services, which augmented its Siemens PLM expertise. Atos and Siemens collaborated to develop several industry-first solutions on the Siemens PLM platform. In 2018, Atos acquired Syntel, which also bolstered its PLM expertise. Some of Atos’ competitors are also investing in PLM capabilities. For example, Accenture acquired PLM Systems in 2020. In addition, HCL launched the 1PLMCloud solution to help manufacturing firms transform their computer-aided design (CAD) and product lifecycle management (PLM) infrastructure into an on-demand, scalable and agile environment.

Processia will help Atos strengthen its PLM and engineering solutions division, complementing its current offerings of Siemens, PTC, and Dassault Systèmes services. In addition, the acquisition will help Atos expand its client footprint in North America and Europe. It will also help Atos strengthen industry-based offerings in aerospace, automotive, transportation, life sciences, discrete manufacturing, and high-tech sectors.

The Bottom line: Atos clients will benefit from its non-Siemens PLM capability across verticals for PLM and Industry 4.0 services

Atos has strong PLM capabilities in core manufacturing sectors like automobile, aerospace. Thus it has an opportunity to increase its expertise in other verticals such as utilities, process, electronics, etc., through this acquisition. In addition, Atos can leverage Processia’s expertise in the Dassault Systèmes PLM platform as it has 20+ years of relationship with it. In summary, Atos clients will benefit from its expertise across different PLM product platforms and its ability to integrate digital product development with smart manufacturing across industries. Thus, Atos can be the one-stop service provider for its clients for manufacturing transformation.