ANSYS and Livermore Software Technology Corporation Sign Definitive Acquisition Agreement
Acquisition will bolster ANSYS' passenger safety, healthcare and manufacturing capabilities, ANSYS says.
Latest in Finite Element Analysis FEA
Finite Element Analysis FEA Resources
September 13, 2019
ANSYS has entered into a definitive agreement to acquire Livermore Software Technology Corporation, provider of explicit dynamics and other advanced finite element analysis technology. Once closed, the acquisition will enable 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 company says.
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 Livermore, CA, company's solution, LS-DYNA, is a scalable multiphysics solver that can 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. The combined company's strengths include simulation for structures, fluids, electromagnetics, optics, safety and machine learning to offer solutions for autonomous and electric vehicles to global automotive manufacturers and their suppliers, ANSYS reports.
LSTC's solutions are also 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,” says 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,” Gopal adds. “Driven by the vision of its founder John Hallquist, LSTC has focused on customer success throughout its history.”
“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,” says 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,” Hallquist adds. “I expect that the combination of Workbench and LS-DYNA will expand our user base by at least an order of magnitude.”
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.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
More ANSYS Coverage
More Livermore Software Technology Corporation Coverage
About the Author
DE’s editors contribute news and new product announcements to Digital Engineering. Press releases can be sent to them via [email protected].Follow DE