California design software titan Autodesk took another step in its growing dominance of the 3D modeling and animation industry with the late-Thursday announcement that it has signed an agreement of intent to acquire substantially all of the assets of Montreal-based Softimage from Avid Technology for US$35 million.

If the purchase goes through, Autodesk would have under its umbrella the three market leaders in the 3D-animation technology field. It purchased Montreal-based Discreet Technology, makers of 3ds Max software, in 1999 for a reported US$410 million, rebranding it as Autodesk Media & Entertainment in 2005. That was followed by its US$197 million acquisition of Toronto’s Alias, providers of Maya software, in early 2006.

There was speculation at the time that the parent company would focus its marketing of 3ds Max on the gaming industry, while Maya would continue going head-to-head with the likes of Softimage’s flagship XSI offering for high-end motion picture FX and animation. Maya has been used on such recent blockbusters as The Incredible Hulk and Journey to the Center of the Earth, while XSI technology can be seen at work in Journey as well as in Indiana Jones and the Kingdom of the Crystal Skull.

Autodesk is eyeing the gaming market with its would-be acquisition, according to company SVP Marc Petit.

‘Upon the completion of this acquisition we will be adding Softimage technology and products to our portfolio, and welcoming one of the most talented teams in the industry to Autodesk Media & Entertainment,’ he said in a statement. ‘Both will help us accelerate the work of our Games Technology Group, as we build the next-generation of real-time, interactive 3D authoring tools for games, film and television.’

To that, Gary Greenfield, CEO and chairman of Avid, added: ‘We are excited about what this transaction means for customers of Softimage. The Softimage 3D product line has performed well in the video games market, a sector where Autodesk has a track record of success. Autodesk will provide a great home for the business.’

Autodesk says it will continue developing and selling Softimage’s core line, including XSI; Face Robot for rigging and animating 3D faces; Cat, which would be integrated into the 3ds Max line; and the Crosswalk interoperability solution. It will also integrate some Softimage technology into Autodesk solutions and products.

Petit tells Playback Daily via e-mail that it is too early for Autodesk to decide on whether the Softimage products will be rebranded.

‘We appreciate the strength of the Softimage brand in the industry and plan to leverage it,’ he writes.

He adds that his company intends to maintain Softimage’s home base in Montreal and ‘continue growing its Montreal-based R&D team into a world-class center of excellence.’

He acknowledges that there will be layoffs, however. ‘Upon closing of the transaction, Softimage employees that are not part of the acquisition by Autodesk will have their employment terminated,’ he writes. ‘Marc Stevens, GM of Softimage, will stay on board as part of Autodesk Media & Entertainment’s executive management team.’

The deal is expected to close in November, although Petit would not disclose what conditions had to be met for that to happen.

Softimage was founded in 1986 by Montreal entrepreneur Daniel Langlois, who is also behind cutting-edge production center and cinema Ex-Centris, digital content prodco Media Principia, and charitable research organization The Daniel Langlois Foundation. The company was bought in 1994 by Microsoft, which sold it four years later to Avid, the market leader in high-end nonlinear editing systems. Langlois departed at the time of the latter deal, valued around US$133 million.