Analytical Graphics to be purchased for $700M
PITTSBURGH » Analytical Graphics Inc. of West Whiteland, Chester County, has signed a definitive agreement with Ansys, to be acquired by the Pittsburgh-based company — an innovator of engineering simulation software.
Analytical Graphics Inc. is a provider of simulation, modeling, testing and analysis software for aerospace, defense and intelligence applications.
The deal is valued at $700 million and is expected to close in the fourth quarter of this year, pending the receipt of regulatory approval.
Once closed, the acquisition is expected to expand the scope of Ansys’ solution offering by empowering users to solve challenges “from the chip now all the way to a customer’s’ entire mission,” according to a press release.
Under the terms of the agreement, 67% of the $700 million purchase price will be paid in cash, while the remaining 33% will be paid through the issuance of Ansys common stock. Ansys also anticipates obtaining new debt financing to fund a significant portion of the cash component of the purchase price.
“Ansys’ acquisition of AGI will help drive our strategy of making simulation pervasive from the smallest component now through a customer’s entire mission,” Ajei Gopal, president and CEO of Ansys, said in a press release Monday announcing the acquisition. “It will also expand the use of simulation in the key aerospace sector, where the stakes can be at their highest levels. We are excited to welcome the expert AGI team — and to expand the reach of their world-class technology to industries outside of aerospace, including for autonomy and 5G applications.”
As an existing Ansys partner, Analytical Graphics Inc.’s technology already connects into the Ansys simulation portfolio. Once the acquisition is completed, Analytical Graphics Inc.’s “strong customer relationships will help Ansys reach new aerospace and defense customers while the Ansys sales channel can drive mission-based simulation to its broader existing installed base,” the release stated.
According to Matt Zack, vice president of corporate development for Ansys, Analytical Graphics Inc. employs about 200 people. Nearly all of them are in the U.S. and most are at the Chester County facility, 220 Valley Creek Blvd., West Whiteland.
“Ansys will retain all employees, and employees will continue to operate from their current locations. As with past Ansys acquisitions, leaders from both companies will work collaboratively to plan and to leverage each individual company’s strengths for the benefit of the combined organization,” he said in an emailed response to questions.
Analytical Graphics Inc. was founded in 1989 by Paul Graziani, CEO and Scott Reynolds, chief software architect. With its headquarters in Chester County, the company also has field offices in Maryland, Colorado and internationally.
“In the three decades since our founding, we have continuously invested in our technology to create and advance digital mission engineering,” Graziani said in the release. “We are thrilled to become part of Ansys so we can dramatically extend the reach of our world-class products and help more customers accomplish their critical missions.”
Digital mission engineering empowers organizations to evaluate and then optimize the performance of engineered systems across the overall mission. It also helps them effectively respond to evolving mission objectives.
Analytical Graphics Inc.’s software will help its customers design, launch and safely operate the next generation of satellite constellations which are critical for navigation, earth imagery, weather and communications, according to Ansys.