Simulation platform maker Ansys has agreed to acquire Exton, Pennsylvania-based software company Analytical Graphics Inc. for $700M in a move to expand the former’s satellite technology simulation portfolio.
Ansys said Monday the transaction is slated to conclude in the fourth quarter of 2020 subject to regulatory clearance and other customary closing conditions.
Following the acquisition, Ansys expects to leverage AGI’s software portfolio designed for the simulation, modeling, test and analysis of technologies used in the defense, aerospace, intelligence and telecommunications sectors.
Ansys also intends to integrate AGI’s expertise to expand the former’s footprint in nontraditional simulation applications beyond the product or components level.
Previously, AGI developed software models to support the launch of satellite constellations for imaging, communications and weather-related missions.
Ajei Gopal, president and CEO of Ansys, said the definitive acquisition agreement will help the company drive the use of simulation for aerospace, 5G and automation applications.
Sixty-seven percent of the transaction’s purchase price will be paid in cash and 33 percent will come from Ansys common stock. Ansys expects the transaction to add $75M to $85M in non-GAAP revenue accretive to non-GAAP diluted earnings per share.
Headquartered in Canonsburg, Pennsylvania, Ansys offers simulation products and services to support clients in sectors such as aerospace, construction energy, manufacturing and defense.
