PITTSBURGH, PA, May 1, 2014 – ANSYS, a global leader and innovator of engineering simulation software, announced today that it has acquired SpaceClaim Corporation, a leading provider of fast and intuitive 3D modeling software for engineers, for a purchase price of $85 million in cash, plus retention and an adjustment for working capital. The transaction was closed on April 30, 2014. On a non-GAAP basis, the transaction is expected to be neutral to slightly accretive to ANSYS’ non-GAAP earnings per share in 2014, and accretive in 2015 and beyond.
Concord, Massachusetts-based SpaceClaim offers the first powerful and easy-to-use 3D modeling tool that can be utilized by any engineer during the product development process. This process, called “direct modeling,” differs dramatically from traditional CAD software, which is used by a relatively small percentage of engineers – typically late in the development process, to document the detailed design. SpaceClaim and ANSYS have partnered in the past to offer customers ANSYS SpaceClaim Direct Modeler.
ANSYS’ longtime vision is “Simulation Driven Product Development”, in which organizations can derive tremendous value by harnessing computer simulation early in the design cycle to predict how a product will perform in the real world. With the addition of SpaceClaim, ANSYS will provide customers with a powerful and intuitive 3D direct modeling solution to author new concepts and then leverage the power of simulation to rapidly iterate on these designs to drive innovation. The broad appeal of the SpaceClaim technology can help ANSYS deliver simulation tools to any engineer in any industry – at the earliest stages of the design cycle. ANSYS has always been an open platform and SpaceClaim’s offerings are also CAD-neutral, allowing users to modify geometries regardless of the system in which they were created.
“This transaction is consistent with our strategic vision and M&A strategy, and accelerates our technological product roadmap to enhance our customer offering and drive growth,” said Jim Cashman, president and CEO of ANSYS. “SpaceClaim is an exciting addition to our portfolio, as it addresses unmet 3D modeling needs in the conceptual modeling, manufacturing and 3D printing spaces, which represents an audience of 5 million users. In addition to driving innovation, the addition of SpaceClaim helps ANSYS accelerate the growth of the simulation market by broadening our user base from analysts and expert users to the millions of design and systems engineers in the industry. We welcome the SpaceClaim team to ANSYS.”
“Leading companies know they need to modernize their engineering software and platforms if they want to develop truly innovative products,” said Daniel Dean, senior vice president of research and development at SpaceClaim. “SpaceClaim’s 3D tools – combined with ANSYS’ proven simulation software – are ideally suited to the rapid pace of today’s business, driving a shorter product development process from concept to prototype.”
Benefits of the Transaction:
- Accelerates ANSYS’ technological product roadmap and longtime vision for Simulation Driven Product Development: SpaceClaim can help simplify and automate what has traditionally been a time-consuming process of preparing geometry for use in a simulation system, enhancing ease-of-use to help ANSYS accelerate product adoption and the growth of the simulation market overall. The transaction enables ANSYS to accomplish what would have taken the Company many years to develop alone, adding the talent pool, best-in-class design and expertise of a technology leader in 3D modeling software.
- Enhances customer offering through complementary technologies: The transaction enables ANSYS to provide its customers with a powerful and intuitive 3D direct modeling solution to author new concepts and then leverage the power of simulation to rapidly iterate on these designs to drive innovation. SpaceClaim’s offerings are also CAD-neutral, allowing users to modify geometries regardless of the system they were created in.
- Drives growth through an expanded customer base and cross-selling opportunities: The broad appeal of SpaceClaim’s technology can help ANSYS deliver simulation tools to any engineer in any industry – at the earliest stages of the design cycle – expanding ANSYS’ user base from analysts and expert users to 5 million design and systems engineers.
- Increases innovation: SpaceClaim’s flagship product is SpaceClaim Engineer, the world’s fastest and most innovative 3D direct modeler. It offers best-in-class UI/UX design for both 3D applications and mobile devices. SpaceClaim provides customers with 3D direct modeling tools to rapidly iterate product designs and drive innovation.
- Financial benefits: ANSYS will be able to leverage its infrastructure and global footprint to accelerate the combined company’s growth and profitability. On a non-GAAP basis, the transaction is expected to be neutral to slightly accretive to ANSYS’ earnings per share in 2014 and accretive in 2015 and beyond. Additionally, SpaceClaim has net operating losses (NOLs), which ANSYS will be able to carry forward to reduce future tax payments.
In connection with the transaction, Goodwin Procter LLP is legal counsel to ANSYS. Deutsche Bank Securities Inc. is exclusive financial adviser to SpaceClaim, and Latham & Watkins LLP is legal counsel.
About ANSYS, Inc.
ANSYS brings clarity and insight to customers’ most complex design challenges through fast, accurate and reliable engineering simulation. Our technology enables organizations ― no matter their industry ― to predict with confidence that their products will thrive in the real world. Customers trust our software to help ensure product integrity and drive business success through innovation. Founded in 1970, ANSYS employs more than 2,600 professionals, many of them expert in engineering fields such as finite element analysis, computational fluid dynamics, electronics and electromagnetics, and design optimization. Headquartered south of Pittsburgh, USA, ANSYS has more than 75 strategic sales locations throughout the world with a network of channel partners in 40+ countries. Visit www.ansys.com for more information.
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