PITTSBURGH, Sept. 11, 2019 /PRNewswire/
-- ANSYS (NASDAQ: ANSS), the global leader and
innovator of engineering simulation software, announced today that
it has entered into a definitive agreement to acquire Livermore
Software Technology Corporation (LSTC), the premier provider of
explicit dynamics and other advanced finite element analysis
technology. Once closed, the acquisition will empower ANSYS
customers to solve a new class of engineering challenges, including
developing safer automobiles, aircraft and trains while reducing or
even eliminating the need for costly physical testing. The purchase
price for the transaction is $775
million, of which 60% of the consideration will be paid in
cash and 40% will be paid through the issuance of ANSYS common
stock to the current owners of LSTC. In conjunction with the
transaction, ANSYS anticipates obtaining new debt financing to fund
all or a significant portion of the cash component of the purchase
price.
The automotive industry has widely adopted the Livermore, California company's gold-standard
solution, LS-DYNA, a highly scalable multiphysics solver, to
accurately predict a vehicle's behavior and the effects on
occupants during a collision. To do this, LS-DYNA simulates the
behavior of the vehicle structure and all components including
tires, seats, seatbelts, airbags, accelerometers, sensors and
batteries in a fully coupled mathematical framework. LSTC counts
the vast majority of tier one automotive suppliers among its
customers. The combined company's strengths in simulation for
structures, fluids, electromagnetics, optics, safety and machine
learning will deliver a powerful solution for autonomous and
electric vehicles to global automotive manufacturers and their
suppliers.
The ability of LS-DYNA to scale to industry-leading levels
on high-performance computers has propelled its usage outside of
the automotive sector. LSTC's solutions are widely used in
aerospace, civil engineering, defense, manufacturing, and the
biomedical industries.
"LSTC has been a decades-long ANSYS partner, and we have
tremendous respect for the deep ties that they have built with
their customers for more than 30 years," said Ajei Gopal, ANSYS
president and CEO. "Upon close, we expect our shared
customer-centric approach, coupled with access to our combined
portfolio of simulation solutions, will deliver enormous value to
our mutual customers. Additionally, this acquisition will enable
ANSYS to significantly advance our existing integration of LS-DYNA
into the ANSYS Workbench environment, providing ANSYS customers
seamless access to an even wider range of advanced simulation
technology. Driven by the vision of its founder John Hallquist, LSTC has focused on customer
success throughout its history. I am personally thrilled for the
opportunity to work more closely with this industry legend."
"As an ANSYS partner for nearly 25 years, I am excited to
formally join ANSYS and contribute to their place as the leader in
engineering simulations," said John O.
Hallquist, founder and CEO of LSTC. "ANSYS is the perfect
home for LSTC's world-class team of scientists, mathematicians and
engineers to continue advancing state-of-the-art, scalable and
fully coupled, multiphysics computations. The ANSYS Workbench
platform provides their customers with access to a uniquely broad
portfolio of simulation technologies packaged into a user-friendly
interface that is the envy of the industry. I expect that the
combination of Workbench and LS-DYNA will expand our user base by
at least an order of magnitude. Here at LSTC, nothing makes all of
us happier than when our research enables more customers to
imagine, design and implement ambitious projects that were
previously impossible."
The transaction is expected to close in the fourth quarter of
2019, subject to the satisfaction of customary closing conditions
and regulatory clearance. ANSYS management will provide further
details regarding the transaction and its impact on the 2019
financial outlook after the closing. ANSYS expects that the
transaction will add $60 million to
$65 million of non-GAAP revenue to
its 2020 results and will be neutral to modestly accretive to
non-GAAP operating margins and diluted earnings per share. Non-GAAP
projections exclude the effects of acquisition adjustments to
deferred revenue, stock-based compensation, amortization of
acquired intangible assets and transaction costs related to the
acquisition.
About ANSYS, Inc.
If you've ever seen a rocket launch, flown on an airplane,
driven a car, used a computer, touched a mobile device, crossed a
bridge or put on wearable technology, chances are you've used a
product where ANSYS software played a critical role in its
creation. ANSYS is the global leader in engineering
simulation. Through our strategy of Pervasive Engineering
Simulation, we help the world's most innovative companies deliver
radically better products to their customers. By offering the best
and broadest portfolio of engineering simulation software, we help
them solve the most complex design challenges and create products
limited only by imagination. Founded in 1970, ANSYS is
headquartered south of Pittsburgh,
Pennsylvania, U.S.A., Visit www.ansys.com for more
information.
ANSYS and any and all ANSYS, Inc. brand, product, service and
feature names, logos and slogans are registered trademarks or
trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All
other brand, product, service and feature names or trademarks are
the property of their respective owners.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 with respect to the proposed acquisition, including
statements regarding the benefits of the acquisition, the
anticipated timing of the acquisition and the products and markets
of each company. These forward-looking statements generally are
identified by the words "believe," "project," "expect,"
"anticipate," "estimate," "intend," "future," "opportunity,"
"plan," "may," "should," "will," "would," and similar expressions.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to: (i) the risk that the
acquisition may not be completed in a timely manner or at all, (ii)
the failure to satisfy the conditions to the consummation of the
acquisition, including the receipt of certain regulatory approvals,
(iii) the occurrence of any event, change or other circumstance
that could give rise to the termination of the acquisition
agreement, (iv) risks that the proposed transaction disrupts
current plans and operations of LSTC and potential difficulties in
LSTC employee retention as a result of the transaction, (v) risks
related to diverting management's attention from LSTC's ongoing
business operations, (vi) the ability of ANSYS to successfully
integrate LSTC's operations, product lines, and technology, and
(vii) the ability of ANSYS to implement its plans, forecasts, and
other expectations with respect to LSTC's business after the
completion of the proposed acquisition and realize additional
opportunities for growth and innovation. In addition, please refer
to the documents that ANSYS files with the SEC on Forms 10-K, 10-Q
and 8-K. These filings identify and address other important risks
and uncertainties that could cause events and results to differ
materially from those contained in the forward-looking statements
set forth in this press release. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and ANSYS assumes no
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise.
ANSS-F
Contact
|
Media
|
Tom
Smithyman
724.820.4340
tom.smithyman@ansys.com
|
Investors
|
Annette
Arribas
724.820.3700
annette.arribas@ansys.com
|
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SOURCE ANSYS, Inc.