- Keysight aims to expand its software prototyping capabilities in computer-aided engineering with the acquisition of ESI Group.
- The completion of the acquisition of the controlling block of ESI shares is anticipated to occur in the fourth quarter of 2023
Test and measurement company, Keysight Technologies, is set to acquire the entire share capital of virtual prototyping solutions provider, ESI Group, for 155 euros per share in an all-cash transaction. The acquisition will value ESI Group’s fully diluted share capital at 913 million euros.
With the acquisition of ESI Group, Keysight aims to expand its software prototyping capabilities in computer-aided engineering, as industries increasingly focus on virtualisation to enable virtual prototyping of products, manufacturing processes, and workflows.
Satish Dhanasekaran, President and CEO of Keysight, expressed his enthusiasm for the acquisition, stating that it aligns with the company’s strategy of providing software-centric solutions with advanced simulation capabilities. “The shared culture of innovation between Keysight and ESI Group will create value for all stakeholders,” he added.
Keysight made a binding offer to certain shareholders of ESI Group on June 28, 2023, to acquire a controlling block of ESI Group’s share capital and voting rights. Following this, Keysight will file a proposed mandatory tender offer for the remaining outstanding shares of ESI Group. If the legal conditions are met, a squeeze-out procedure will be initiated, resulting in the delisting of ESI Group from Euronext Paris Exchange.
The completion of the acquisition of the controlling block of ESI shares is anticipated to occur in the fourth quarter of 2023, followed by the tender offer shortly thereafter. J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Keysight, while Paul Hastings LLP is acting as the legal advisor.
Cristel de Rouvray, CEO of ESI Group, also expressed delight at the announcement, viewing it as a significant milestone for ESI. “Over the past four years, our entire team has been dedicated to transforming ESI Group into a leading actor in the industrial software and simulation sectors. This combination with Keysight will enable ESI to enter a new phase of its development,” she said.
Founded in 1973, ESI Group is a prominent provider of virtual prototyping solutions in the automotive and aerospace sectors. The company provides advanced software solutions that simulate the behaviour of products during testing and real-life usage. Their portfolio includes predictive simulation technology for complex system designs, real-time digital twin solutions that combine model-driven simulation with data-driven tests, and immersive industrial solutions for workflow automation and virtual manufacturing.
