French software firm Dassault Systemes to buy US-based Exa Corp
29 September 2017
French multinational software company Dassault Systemes yesterday struck a deal to buy US-based Exa Corporation in a deal valued at about $400 million, in order to expand its next generation fluid dynamics 3D capabilities.
Under the terms of the deal, approved by Exa's board of directors, Dassault Systèmes' subsidiary will acquire Exa for $24.25 per share in cash.
The offer represents a premium of about 43 per cent to Exa's closing stock price of about $17 on Wednesday.
The transaction is expected to close in the fourth quarter of 2017, both companies said in a statement.
Dassault, which recently acquired a majority stake in cloud computing software firm Outscale and fully purchased Dutch company AITAC, said that ''with the addition of Exa, Dassault Systèmes' 3DEXPERIENCE platform will provide customers with a proven, diverse portfolio of combined Lattice Boltzmann fluid simulation technologies, as well as Exa's fully industrialized solutions and nearly 350 highly experienced simulation professionals.''
Founded in 1991, Burlington, Massachusetts-based Exa develops and distributes computer-aided engineering software to automotive and transportation industries.
Its main product is PowerFLOW, a lattice-boltzmann derived implementation of computational fluid dynamics, which can very accurately simulate internal and external flows in low-Mach regimes.
Currently, it focuses primarily on OEMs and suppliers in the transportation market, including the automotive, commercial vehicle, off-highway equipment, train, and aerospace industries.
Its software is used by designers and engineers at more than 150 companies in transportation and mobility, as well as aerospace and defense, natural resources, and others to evaluate highly dynamic fluid flow throughout the design process.
Its clients include BMW, Tesla, Toyota, NASA, Embraer, British Petroleum, and others.
''Both Dassault Systèmes and Exa believe in the value of an integrated focus on science and industry. It is a critical part of our commitment to delivering 3DEXPERIENCE universes that harmonize products, nature and life. Simulation of dynamic fluid flow is an important part of our multiphysics and multiscale simulation strategy,'' said Bernard Charlès, vice chairman and CEO, Dassault Systèmes.