Design Power, Inc. Announces Strategic Investment from Norwegian Home Builder
Selvaag Group Chooses Intelligent Design System To Automate Home Building Operations, Makes $1 Million Investment In Silicon Valley Firm
Cupertino, Calif. - October 27, 1998 - Design Power, Inc., today announced that it has received a strategic investment from AS Selvaag Invest, the capital investment subsidiary of the Selvaag Group, a Norwegian-based corporation with operations in finance, construction, shipping, manufacturing and energy exploration and production. The $1 million investment is part of a strategic alliance between Selvaag and Design Power, to further develop software systems that automate home building design and construction.
The Selvaag Group chose to expand its relationship with the Silicon Valley software firm following the successful completion of a pilot project to implement Design Power's Design++™ knowledge-based design technology. The software was shown to shorten design/deployment cycles, improve new home design, and increase the efficiency and profitability of Selvaag's new home development and construction operations.
"The investment in Design Power is an important strategic move in our effort to place the Selvaag Group at the forefront of advanced home design and construction," said Bjarne Kiil, chairman of Selvaag Homes. "By forming this close tie with Design Power, Selvaag will have access to an important and advanced Intelligent Design System which will strengthen and expand our leadership in the marketplace."
Design++ is a powerful software system that allows companies to automate design and engineering work processes by capturing the knowledge of in-house experts. Design++ produces object-oriented models which link to commonly used CAD (computer aided design) systems such as AutoCAD and MicroStation. The software captures a firm's best practice scenarios and integrates design, engineering and manufacturing processes to achieve significant productivity improvements.
Working with Design Power, Selvaag will create a software library of basic housing design elements, which will be used to automate architectural design, site plans and drawing generation. The company chose Design++ following an investigation of the newest technologies available for engineering and design work process automation. Design Power's unique solution provides Selvaag with a design execution system that complements its enterprise resource planning software.
"We are pleased that Selvaag has recognized the power of our design execution technology," said Ulf Strom, president of Design Power. "Both Selvaag and Design Power will benefit from the opportunity to work together on solutions that increase efficiency and profitability for the home construction industry."
The $1 million investment was made by AS Selvaag Invest, which maintains a diversified portfolio of direct equity investments in shipping, energy and high technology. AS Selvaag Invest and three other subsidiaries comprise the Selvaag Group of Companies, a diversified international corporation based in Oslo, Norway. The privately owned company applies creative planning, advanced building techniques, modern logistics and interdisciplinary cooperation to drive its continued growth. In 1997, profit before tax was NOK 33 million and total assets were NOK 2,500 million.
Design Power's Intelligent Design System technologies for design, engineering and manufacturing are based on the Design++ platform, and include AutoRouter™ for process plant optimization. Headquartered in Cupertino, California, the company's products are used by manufacturing, engineering construction and chemical process companies worldwide. In addition to Selvaag Homes, clients of Design Power include Fluor Daniel, Inc., Robertson Ceco Corporation, LG Engineering Company, Ltd., Toyo Engineering Corporation, Bayer AG, and Snamprogetti Ltd.
