Pennsylvania-based engineering simulation software developer Ansys has entered into a definitive agreement to acquire Esterel Technologies.
Under the terms of the deal, Ansys will pay around EUR 42.00 million in cash for the French model-based design, verification and code generation tools business.
The consideration will be subject to working capital adjustments on completion, which is pending regulatory approvals and is expected during the third quarter of this year.
Esterel is expected to complement Ansys’s software solutions and broaden the company’s vision to include hardware systems.
Jim Cashman, chief executive of Ansys said: "The combination of these two great companies will uniquely enable customers to comprehensively simulate complete systems and predict with confidence that their products will thrive in the real world.
“Further, we believe that the combination will foster innovation by gaining engineering insight across disciplines that have historically been silos."
Eric Bantégnie, chief executive of Esterel added: "The complementary nature of software and hardware simulation provides key technological strengths that enhance our ability to deliver comprehensive, high-fidelity, world-class system simulation technologies that customers demand.
“We believe Esterel customers will leverage the integration of our embedded software development products into a complete model-based systems engineering solution.
“This unique combination will reduce costly reliance on physical testing and streamline system engineering processes, while also improving the speed and success of our customers' product development efforts.”
Esterel is headquartered in Elancourt and according to its website, is the leading provider of critical systems and software development solutions to the aerospace, defence, rail transportation, nuclear, and industrial sectors.
The company was founded in 1999 as a spin-off of French software firm Simulog and released the first incarnation of its tool set in April 2000.
Headed by chief executive and founder Eric Bantégnie, the business now has more than 100 employees.
Ansys is based in Canonsburg, with over 60 sales locations worldwide and channel partners in 40 countries.
The group was formed in 1970 and has more than 2,000 staff.
It has been listed on Nasdaq since February 2003 and generated revenue of USD 691.45 million in fiscal 2011, up 19.2 per cent on 2010.
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