Autodesk Signs Definitive Agreement to Acquire Alias

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Oct 04, 2005

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Autodesk Signs Definitive Agreement to Acquire Alias
Acquisition to Extend Autodesk's 3D Graphics Leadership in the Manufacturing and Media and Entertainment Industries

SAN RAFAEL, Calif., Oct. 4 /PRNewswire-FirstCall/ -- Autodesk, Inc. (Nasdaq: ADSK) today announced that it has signed a definitive agreement to acquire Alias(R), 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(R) is Alias' 3D character animation product, Alias FBX(R) is widely used in the exchange and use of 3D content, and Maya (R) 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.

Additional Information
Additional information about this transaction is available at:
http://www.autodesk.com/autodeskandalias.

Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the impact of the acquisition on Autodesk's product offerings and the performance of its business, costs associated with the acquisition, estimated costs of the deal, the adjustment of Alias' deferred revenue, restructuring charges, and compensation expenses related to the acquisition. Factors that could cause actual results to differ materially include the following: difficulties encountered in integrating merged businesses; uncertainties as to the timing of the acquisition; the satisfaction of closing conditions to the transaction, including the receipt of regulatory approvals; whether certain market segments grow as anticipated; the competitive environment in the software industry and competitive responses to the proposed acquisition; and whether the companies can successfully develop new products and the degree to which these gain market acceptance.

Further information on potential factors that could affect the financial results of Autodesk are included in the company's report on Form 10-K for the year ended January 31, 2005 and Form 10-Q for the quarter ended July 31, 2005 which are on file with the Securities and Exchange Commission.
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Read The Deal about the Deal (an interview with Autodesk and Alias) for more information

Comments

View Jason Parks's profile
Oct 04, 2005
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Huh? Why the hell would Alias want to be combined with 3DSMax?

View admin 's profile
Oct 04, 2005
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How will this affect Maya/3dsmax ?? That is the big question...

View David Schoneveld's profile
Oct 04, 2005
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this is nuts! what the hell... So the "what's better Maya or Max" question will soon be answered. Maxa is the best!

Dashboard_avatar
Oct 04, 2005
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I'll admit I never saw this one coming. But in retrospective, it's a good deal for both companies.

The Autodesk shares were at a peak. By combining Alias with Autodesk, they can probably raise the price yet increase their total market share. They can also save money by keeping only the best employees in both companies and by laying off excess sales/marketing/HR staff. From a corporate standpoint, it makes complete sense. Hopefully it won't come at the cost of user choices.

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Mag
Oct 04, 2005
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woohoo

Maya 8 new features announced!

The following new features have been announced for Maya 8 the first Maya release since it's purchase by Autodesk

Teapot primitive

That's all so far

View David Schoneveld's profile
Oct 04, 2005
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LOL teapot!!! good one

found a faq on the deal

http://images.autodesk.com/adsk/files/Autodesk_Alias_External_FAQ.pdf
(direct link to pdf)

View admin 's profile
Oct 04, 2005
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I was just on the conference call and asked the question:

"3dsmax and maya have many overlapping and competing technologies. Will the products be unified moving forward and if not, how will they be marketed separetly?"

Answer summarized "the direction is to maintain maya and max separetly but unify the customer pipeline while using both products".

Other details I got on the call:

- $300 million in r&d gained
- combined product lines will be offered
- $83 million revenue last year for Alias
- Doug Walker will be leaving after a while
- focus on interoperability of all the product lines
- it appears Maya Brand and 3dsmax Brand will remain intact

Dashboard_avatar
Oct 04, 2005
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AutoDesk is loaded, this rocks, glad to hear they were finally bought up by a stable company with a good track record. This will benefit all of us in the longrun.

View David Schoneveld's profile
Oct 04, 2005
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yeah, I was thinking that at least a software company now owns Maya vs a Teachers Pension in Canada. I felt like they only cared about selling, and less for delevoping.

Dashboard_avatar
Oct 04, 2005
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Everyone has heard about the autodesk acquisition of Alias.
It would be interesting to see which 3d package is used more and in which industry.

http://www.highend3d.com/boards/index.php?showtopic=214098

Maya

It was nice knowing you! :(

http://img377.imageshack.us/img377/5720/mayarip6iu.jpg

http://img377.imageshack.us/img377/5606/max97co.jpg

Thanks imageshack.us

View Jason Parks's profile
Oct 04, 2005
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Shall we get this war started in earnest?

I don't think Max is going to eclipse Maya. It will probably be the other way around. There are too many big and great companies using Maya. Max is relegated to game makers, TV, and lower-end production. (Ooops, did I say that out loud?)

Flaming . . . . Commence!

View David Schoneveld's profile
Oct 04, 2005
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I thought that they have overlapping features so whats the future? then I consoled myself thinking that discreet has
flame, flint, smoke, combustion and toxic that basically all do the same thing too. So maybe they don't HAVE to combine, eclipse or negatively effect each other.

Dashboard_avatar
Oct 04, 2005
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Wht the hell they doing why they done this things...i can t belive this..its too bad..if its happend in oppositte then its good now its very baddddddd

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Mag
Oct 04, 2005
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ooh itll be nice if you can output in rich pixel format from maya

that would be really cool

really really cool

Dashboard_avatar
Oct 04, 2005
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Yay, now we can look forward to those annoying random crashes, Direct3d glitches and a "kiddy" lookin easy to use interface, with low customization....not to mention the Teapot, and standard primitive sizes.....boo to you Autodesk.....boooooooo

Dashboard_avatar
Oct 05, 2005
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I guess it is time to start using XSI

Dashboard_avatar
Oct 05, 2005
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f ... mmhm.. well as long as they don't f with the interface then fine. Haha..wow this is pretty big deal. I kinda hopped it was April 1st haha. Anyway, at least it wasn't APPLE !! Whoohoo. My maintance contract is comming up..should I even bother?

View gmask 's profile
Oct 05, 2005
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My jaw is literally on the floor...

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Mag
Oct 05, 2005
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[quote]MayaWillNeverDie said:
Yay, now we can look forward to those annoying random crashes, [/quote]

I get those now :)

View Kobayashy 's profile
Oct 05, 2005
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Wow what a shoking news!

Personaly I`m really scared that both film and video game industry will be fighting to keep their software alive in the next few years. They are saying that both softwares won`t be merged... maybe not in the next year or so, but it will have to happend someday.

I bet that Softimage will use this to get more people to switch over. And with XSI 5, I think they will!

So I guess that what`s left to do is wait and see ... and maybe prey or something.

Dashboard_avatar
Oct 05, 2005
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I feel sick, I was having a good day.
Well I guess it's time to nab up Maya 7.
I thought I was done with Autodesk....
XSI anyone?
I am now crying.

Dashboard_avatar
Oct 05, 2005
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o guys guys guys...its just softwareee..were is that talented, creative, problem solving spirit that makes cool stuff no matter wat tool you use??? hmm i dont think i can even swallow this advise:( darn it

Dashboard_avatar
Oct 05, 2005
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LOL, I am so looking forward to maya 9.0 and the infamous crash and corrupt feature that autodesk loves to include in all there software.

Max has a teapot button maya has an ocean button. Just when maya started get sweet modeling tools they go and blow it by selling them to the worst ever cg company.

It is alsmost like microsoft paint buying out adobe photoshop. Just doesn't make sense

Dashboard_avatar
Oct 05, 2005
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i have used both max and maya in production. most of the creature work done in maya just cant be done in max end of story. its a sad day for the 3d community. not only does one mega corporation own maya and max. it makes business sense to kill maya off slowly and take back all the seats that they lost to alias. and try to force the others into 3ds seats. its a classic corporate buy out strategy. the same thing microsoft does all the time. this is really bad. if autodesk does as good a job woth maya as they do with max im switching to xsi. lets just hope that the whole thing blows up in there face like when microsoft bought softimage. that was a compleat disaster. softimage came back and is doing quite well now.

Dashboard_avatar
Oct 05, 2005
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Lets hope some sort of undergrounnd open source version of Maya is produced by the community.
I wonder what Alex Alvarez is thinking.

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