Keysight Technologies to acquire ESI Group in major software prototyping expansion

New York Stock Exchange-listed technology company Keysight Technologies has declared its plans to acquire all shares of ESI Group at a rate of €155 euros per share, payable in cash.

The acquisition, valuing the Euronext Paris-listed ESI Group’s fully diluted share capital at €913 million, significantly enhances Keysight Technologies’ presence in the automotive and aerospace sectors where ESI Group is a recognized innovator in virtual prototyping solutions.

Founded in 1973, ESI Group’s software provides product behavior simulations during both testing and real-life usage phases. Its unique predictive simulation technology caters to complex system designs while integrating model-driven simulation with data-driven tests to generate virtual simulations. Furthermore, ESI Group’s solutions facilitate workflow automation and virtual manufacturing, a key attribute in the current era of digital transformation.

The integration of ESI Group into Keysight Technologies’ electronic design and test portfolio strengthens the company’s software prototyping capabilities in computer-aided engineering. This strategic move aims to speed up customer’s time to market, cut operational costs, and reduce environmental footprints.

Cristel de Rouvray — ESI Group CEO said: “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 is a testament to the success of the work carried out over the years and will enable ESI to enter a new phase of its development.

“The core values, vision, and ambition that have driven Keysight over its long and reputable history and under its current leadership are perfectly aligned with those of ESI Group: pioneers enabling innovation for industry. I trust this operation is the promise of an exciting and sustainable future.”

On June 28, 2023, Keysight Technologies submitted a binding offer to acquire a controlling block of ESI Group’s share capital and voting rights.

Following the acquisition of this controlling block, which is expected to finalize in the fourth quarter of 2023, Keysight Technologies intends to file a mandatory tender offer for ESI Group’s remaining shares. Should all legal conditions be satisfied, a squeeze-out procedure will take place, leading to ESI Group’s delisting from Euronext Paris.

Satish Dhanasekaran — Keysight Technologies President and CEO said: “Keysight’s acquisition of ESI Group accelerates our strategy of providing software-centric solutions with virtual prototyping and advanced simulation capabilities. Keysight and ESI Group share rich cultures of innovation and strong commitments to solving customers’ most complex challenges, which will enable value creation for all stakeholders.

“The Keysight team looks forward to working with the world-class talent at ESI Group to unlock opportunities and drive our combined success.”

Earlier this year, Keysight Technologies acquired Cliosoft, a system-on-chip design data and enterprise IP management solutions developer, for an undisclosed amount.