Autodesk announced today that it has reached an agreement to acquire ALGOR Inc., of Pittsburgh for approximately $34 million, or (by our estimate) slightly more than two times revenue. Autodesk has said all along that it will continue to seek strategic technology acquisitions that enable it to broaden its vision of digital prototyping for it manufacturing customers; ALGOR adds multiphysics, mechanical event simulation and some CFD,  among other offerngs, to Autodesk’s existing CAE line-up of Moldflow, Plassotech and Solid Dynamics.

ALGOR was founded in 1976 and currently serves the automotive, aerospace, medical, consumer products, defense, energy and utilities industries. According to Autodesk’s press release about the acquisition, “Upon completion of the acquisition, Autodesk’s current intent is to integrate ALGOR into its Manufacturing Solutions business unit and to continue developing and selling ALGOR’s core product line. Autodesk plans to continue developing the ALGOR products with an open approach, allowing direct data exchange between ALGOR products and multiple computer aided design software offerings.”

The transaction is expected to close by the end of January 2009.