Ansys to acquire Ansoft

Acquisition is Ansys' first foray into the broader EDA software industry and will enhance the breadth, functionality, usability and interoperability of its portfolio.

Ansys has signed a definitive agreement to acquire Ansoft for a purchase price of approximately US $832 million in a mix of cash and Ansys common stock.

The strategic, complementary business combination of Ansys and Ansoft will create the leading provider of "best-in-class" simulation capabilities, with combined trailing 12-month revenues of $485 million.

The acquisition of Ansoft is Ansys' first foray into the broader EDA software industry and will enhance the breadth, functionality, usability and interoperability of the combined Ansys portfolio of engineering simulation solutions.

The combination is expected to increase operational efficiency and lower design and engineering costs for customers, and accelerate development and delivery of new and innovative products to the marketplace.

The complementary combination of Ansoft's and Ansys' software products and services is expected to give Ansys one of the most complete, independent engineering simulation software offerings in the industry, reaffirming and strengthening Ansys' commitment to open interface and flexible simulation solutions that are primarily driven by customer demand, flexibility and choice.

With over 40 direct sales offices and 21 development centres on three continents, the combined company will employ approximately 1700 people.

"We are very excited about the state-of-the-art technologies that Ansoft adds to Ansys' simulation capabilities", says James E Cashman III, President and Chief Executive Officer of Ansys.

"Both companies have a strong commitment to their customers and employees, and share a passion for the development of innovative products and services and a history of world-class execution".

"This combination will further strengthen these values and will allow us to better serve our customers by accelerating the delivery of comprehensive, customer-driven engineering simulation solutions and by enabling us to provide high quality support throughout the world".

"We see this as an opportunity to add highly complementary physics that address the convergence of mechanical and electrical engineering product design and development".

"We are also excited about bringing two great Pittsburgh-based companies together to create an exciting opportunity for aspiring engineers, computer scientists and professionals to join us in our mission to democratise the use of simulation across the globe".

"The simulation technologies that Ansoft adds complement and broaden the existing Ansys portfolio of simulation solutions, enabling the combined company to deliver the integration, efficiency, functionality and interoperability required by customers across a broad range of industries and applications".

"With trailing 12-month revenues ending 31st January 2008 of US $98 million, Ansoft brings a combination of new software revenue growth and strong operating margins".

"Ansoft's solid revenue and customer base, combined with its profitability, should enable the transaction to be modestly accretive to non-GAAP earnings per share in our first full year of combined operations and accretive beyond that", stated Cashman.

"This merger brings together two great companies with a shared vision and strong engineering focus", said Dr Zoltan J Cendes, the founder, Chairman of the Board and Chief Technology Officer of Ansoft.

"The combination of our R and D teams, complementary technological strengths and our commitment to quality will enhance our ability to deliver comprehensive, innovative, world-class simulation software technologies that customers demand".

In conjunction with this transaction, Dr Cendes will join Ansys' Board of Directors following the closing of the transaction.

"The combination of Ansoft's extensive portfolio of electromagnetics, circuit and systems simulation solutions with Ansys' existing simulation capabilities creates a 'best of breed' company that will continue to lead the evolution and innovation of engineering simulation by enabling customers to improve their product development processes, eliminate physical prototypes, reduce time to market for new products and improve product innovation and performance", said Nicholas Csendes, President and Chief Executive Officer of Ansoft.

The two Pittsburgh-based companies are developing integration plans that leverage and build on the cultural similarities and the best practices from each team.

Ansys will provide additional details relative to the acquisition and integration activities subsequent to the closing of the transaction.

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