GROUPE GORGE : Prodways Group, a subsidiary of Groupe Gorgé, broadens its Industry 4.0 offering with the acquisition of AvenAo Industrie

Prodways Group, a Groupe Gorgé company, announces the acquisition of AvenAo Industrie, which has been integrating Dassault Systèmes solutions for over 15 years.

Acquisition of AvenAo Industrie

Founded in 2002 by Sébastien and Lenny Vercruysse, the AvenAo group provides innovative solutions for industries in the fields of design (CAD, simulation, PDM, documentation), production management (CAPE, ERP, accounting) and manufacturing (3D printers, 3D scanners, simulation, topological optimisation). In the past 15 years, the group has become one of the largest distributors of SOLIDWORKS applications from Dassault Systèmes and one of the largest distributors of 3D Systems in Europe.

AvenAo Industrie is the part of the AvenAo group with expertise in integration of Dassault Systèmes' SOLIDWORKS applications in design and 3D development. AvenAo Industrie can handle all issues relating to the design function and offers consulting in 3D design and integrating 3D printing solutions. In 2016, AvenAo Industrie had 75 employees.

With this first significant acquisition since its initial public offering, Prodways Group is accelerating its commercial development and bolstering its consolidation strategy along the entire industrial 3D printing value chain by offering its customers a full range of products and services, from project design through parts fabrication.

Raphaël Gorgé, Chairman and Chief Executive Officer of Groupe Gorgé, stated: “In combination with our industrial 3D printing technologies, the acquisition of AvenAo Industrie represents a powerful accelerator for our commercial development and an extension of what we can offer our customers. Applying Dassault Systèmes technologies to Prodways Group's major business lines, as well as the expertise we have acquired in 3D integration and design, is going to increase our ability to help our customers make their digital transformation, whether in aeronautics, healthcare or other industrial sectors.”

AvenAo Industrie will benefit from significant financial and human resources that will strengthen its success in its current development. Complementarity with other Prodways Group activities should generate significant synergies over the next 18 months.

As part of the deal, Sébastien Vercruysse, the founder of AvenAo Industrie, will join Prodways Group management. “The foundation and development of the AvenAo group has been a wonderful entrepreneurial adventure. Participating in the development of an international leader of the Industry 4.0 revolution is even more exciting and I am proud to commit to this project over the long term. Clients, collaborators and partners will continue to rely on our support.” Sébastien Vercruysse explained.

Prodways Group has entered into exclusive negotiations for the group to acquire 100% of AvenAo Industrie's share capital. The base portion of the transaction will be 50% in shares and 50% in cash and an earn-out in cash accounting for about 20% of the total deal may be paid in 2019. The official valuation auditor, staff consultation and transfer approval of main contracts are on-going.

AvenAo Industrie was profitable in 2016 and is expected to contribute at least €10 million to Prodways Group revenue in 2018.

Partnership with Dassault Systèmes

This strengthening of Prodways Group in the software business has been carried out with the support of Dassault Systèmes. With this deal, Dassault Systèmes and Prodways Group are announcing a higher level of collaboration on the factory of the future at two levels:

• Prodways Group, through its subsidiary INITIAL, was one of the first companies to integrate Dassault Systèmes' 3DEXPERIENCE Marketplace, which furnishes a 3D printing service bringing together designers and additive manufacturing service providers. Several Prodways Group production methods were specified, and the first customer parts were fabricated early on by INITAL using the 3DEXPERIENCE Marketplace currently in the testing phase. “We have decided to integrate INITIAL, subsidiary of Prodways Group, as one of the first international partners of our new Marketplace. Its 25 years of experience in product development, additive manufacturing and production is a great innovation accelerator for our clients.” stated Bernard Charlès, Vice-Chairman of the Board of Directors and Chief Executive Officer of Dassault Systèmes.

• In addition to the SOLIDWORKS application portfolio of solutions, Prodways Group will now offer its customers the 3DEXPERIENCE platform from Dassault Systèmes. This innovative Cloud platform is rounding up Prodways Group's “Factory of the future” offering and enabling migration to an all-digital factory. Bernard Charlès said: “The 3DEXPERIENCE platform is a great tool to facilitate the adoption of new production technologies and offer proven industrial solutions to companies of all sizes. Prodways Group is part of the more dynamic players in the field of the “Industry of the future”. Our collaboration will deliver our clients premium and affordable applications, contents and services thanks to the Cloud.”

Next press release:

Publication of half-year 2017 results on 11 September 2017

About Groupe Gorgé

Groupe Gorgé is an independent group that specializes in high-tech industries. Today, the Group is active in the fields of security and protection in extreme environments, as well as in the 3D printing sector. It employs around 1,700 people, is located in eight countries and directly exports around 40% of its activity. In its more than twenty-five year history, Groupe Gorgé has always developed and driven the latest technological and industrial innovations.

Smart Safety Systems: Developing complete, innovative technological solutions for complex missions in hostile and confined environments.

Protection of High-Risk Installations: Protecting people and ensuring the active and passive protection of installations for energy markets and industrial and tertiary sectors in France. Ensuring the maintenance of these protection systems.

3D Printing: Enabling major industry players to find new routes to successful innovation and production processes by providing systems, 3D printers and new premium material.

In 2016, the Group reported revenue of €281.2 million. It is backed by 1,800 employees and operations in over ten countries.

More information available on www.groupe-gorge.com

Groupe Gorgé is listed on Euronext Paris and on the US OTC market in the form of ADR.

Euronext Paris:

Compartment B.

ISIN code: FR0000062671

Ticker code: GOE

US OTC market:

CUSIP NUMBER: 399451 103

ISIN NUMBER: US3994511034

Ticker Code: GGRGY / GGRGF

Contact

Groupe Gorgé - Raphaël GORGÉ – CEO & Chairman - Tel.: +33 1 44 77 94 77 - E-mail: [email protected]

Finance News – Natacha MORANDI – Analysts/Investors Relations - Tel.: +33 1 53 67 36 94 - E-mail: [email protected]

Finance News – Jean-Michel MARMILLON – Press Relations - Tel.: +33 1 53 67 36 73 - E-mail: [email protected]

Disclaimer

GROUPE GORGE press releases may contain forward-looking statements regarding GROUPE GORGE's targets. These forward-looking statements reflect GROUPE GORGE's current expectations. Such forward-looking statements and targets depend on known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated herein. The risks and uncertainties that could affect the Group's future ability to achieve its targets include, in addition to those indicated in the press release: the strength of competition; the development of markets in which the Group operates and notably the 3D printing division; currency fluctuations; obtaining the export authorizations that may be required for certain activities; control of costs and expenses; changes in tax legislation, laws,
regulations or their enforcement; our ability to successfully keep pace with technological advances; our ability to attract and retain qualified personnel and key staff; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements; manufacturing and supply chain bottlenecks; the performance of our business partners (subcontractors, agents, suppliers, etc.). Some of these risk factors are set forth and detailed in our Document de Référence (Registration Document including the annual financial report filed with the French Autorité des Marchés Financiers), available on our website www.groupe-gorge.com. This list of risks, uncertainties and other factors is not limitative.
Other unanticipated, unknown or unforeseeable factors, such as changes in the economic situation or financial markets, could also have a material adverse effect on our targets.

This press release and the information it contains do not constitute an offer to sell or to subscribe, or a solicitation to purchase or subscribe shares or securities in GROUPE GORGE or in its listed subsidiaries in any country whatsoever.

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Source: Actusnews