Ansys to buy Apache Design for $310 million
6/30/2011 2:22 PM EDT
SAN FRANCISCO—Design software vendor Ansys Inc. said Thursday (June 30) it signed a definitive agreement to acquire power analysis and optimization EDA vendor Apache Design Solutions Inc. for $310 million in cash.
The deal is worth $281 million net of $29 million on Apache's balance sheet, Ansys (Pittsburgh) said. It also includes $13 million worth of retention and provisions and incentives for key members of Apache management and employees, including an additional $13 million of performance equity awards, Ansys said.
Ansys said it intends to fund the transaction with cash on-hand from the combined organization. The transaction, currently expected to close in the third quarter, is subject to customary closing conditions and regulatory approvals, Ansys said. After the closing, Apache will become a wholly-owned subsidiary of Ansys, the company said.
Ansys said the acquisition of Apache complements its software solutions by bringing together products that drives the company's system vision for ICs, electronic packages and printed circuit boards. The combination is expected to accelerate development and delivery of new and products to the marketplace while lowering design and engineering costs for customers, Ansys said.
"We see this as an opportunity to strengthen the Ansys vision for solving chip, package and board design problems," said James Cashman, president and CEO of Ansys, in a statement.
Ansys and Apache are currently developing integration plans that leverage and build on the cultural similarities and the best practices from each team, Ansys said.