Siemens unit to buy Esteq to boost UAE digitalisation

Global technology Siemens has announced that one of its digital industries software unit has acquired Esteq Group, a major distributor of product lifecycle management and simulation, to accelerate digitalisation for customers in UAE.

Global technology Siemens has announced that one of its units, Siemens Digital Industries Software, has signed an agreement to acquire assets of Esteq, a distributor of product lifecycle management, product design and simulation, and manufacturing operations software and services.

Esteq, which is headquartered in Pretoria, South Africa, has a subsidiary Samateq in the UAE serving the aerospace and defence, transportation, consumer products, energy, electronics, machinery, mining and minerals and oil and gas industries.

As per the deal, Siemens will incorporate Esteq and Samateq into new software focused sales organisations in South Africa and the UAE, gaining direct presence to expand and grow the support and services to customers across the regions.

“Through the acquisition of Esteq, Siemens Digital Industries Software will now have a direct presence in the UAE market which will enable Siemens to expand and enhance how we support and service our customers across the region,” remarked Edwin Severijn, senior VP, Europe Middle East and Africa, at Siemens Digital Industries Software.

“The combination of Esteq’s local knowledge and Siemens’ expertise makes it easier than ever before for manufacturing companies to tap into Siemens’ full software portfolio,” he stated.

Last year, Siemens had announced it would boost investment in its digital presence in the Middle East. Establishing and further growing a local Digital Industries Software presence in the region is a logical next step to support that commitment.

Esteq CEO Cobus Oosthuizen said for over 25 years, the group has had a strong partnership with Siemens, developing and growing its engineering and manufacturing software and services business across the Southern African and Gulf regions.

"During that time we have helped hundreds of customers, both large and small, by providing technology solutions that assist them with every step of the product development and delivery process," he stated.

"We are excited to join Siemens, so our customers will not only benefit from the existing relationships and local expertise that our team provides but will also benefit from the extended range of technologies and industry expertise that we can offer as part of Siemens," noted Oosthuizen.

Uwe Troeger, the head of Digital Industries for Siemens in the Middle East, said: "With increasing focus on industrialization in the UAE and across the Middle East, this latest acquisition strengthens our ability to support and service customers with their digital transformation."

"Regional industry must embrace the digital revolution if they are to be competitive on the world stage and create new business opportunities. I greatly look forward to working with the team at Samateq on an enhanced portfolio, to further develop digital industry and manufacturing in the Middle East," he added.

According to Siemens, industrialisation will play a key role in driving economic diversification and sustainable growth across the Middle East region, with countries like the UAE, Egypt, Jordan and Saudi Arabia setting ambitious targets for manufacturing’s contribution to GDP.

The uptake of digital technologies in key regional industries such as oil and gas, water and wastewater and refining and petrochemicals will underpin these industrialization targets.

Siemens is investing heavily in enhancing digital skills among youth in the Middle East, with a series of software grants to universities in UAE, Egypt and Saudi Arabia worth $300 million.

More than 3,850 students will be given access to Siemens’ Digital Industries software, enabling students to learn the skills they need to drive forward digital industry in their countries, it stated.

As an existing local partner, Samteq is already involved in the software roll-out and relevant training for this programme.

The asset sale and purchase transaction is due for completion in the third calendar quarter of 2019. The parties have agreed not to disclose any details of the transaction. The Test and Measurement business which formed part of the Esteq Group is not part of the transaction and will continue as a separate and independent business, it added.-TradeArabia News Service