Quickie: DS acquiring Exa for $400 million

Sep 28, 2017 | Hot Topics

Well, well, well. Dassault Systèmes (DS) and Exa Corporation announced early this morning that DS is acquiring Exa for $24.25 per share, or around $400 million.

You may recall that Exa is a publicly traded company in the US, making the PowerFLOW CFD suite based on the Lattice Boltzmann method and other tools. (Other codes are based on Navier-Stokes; think of LB as ping pong balls and NS as streamers — each is more applicable in some cases.) Exa has served customers in automotive and other industries; in aerodynamics, aeroacoustics, thermal management and other applications

DS is holding an investor call in a few hours, so we’ll learn more of the context then, but for now: Exa CEO Stephen Remondi said in the announcement that “[t]he combination of Exa with Dassault Systèmes’ 3DEXPERIENCE platform will provide Exa with the critical mass of manpower and technology required to accelerate the delivery of our shared vision of driving the value of digital engineering knowledge, enabling everyone in the value chain to access the power of simulation for critical business decisions.”

From the DS perspective, CEOBernard Charlès said “[b]oth Dassault Systèmes and Exa believe in the value of an integrated focus on science and industry. It is a critical part of our commitment to delivering 3DEXPERIENCE universes that harmonize products, nature and life. Simulation of dynamic fluid flow is an important part of our multiphysics and multiscale simulation strategy. With Exa’s valuable application knowledge in transportation and mobility and other industry verticals, we will accelerate our delivery of industry solution experiences to benefit our existing and future customers.”

DS is to start acquiring all of the issued and outstanding shares of Exa common stock for $24.25 per share in the next ten days. With regulatory and other approvals, the acquisition is expected to be completed later this year. For those keeping track, Exa shares closed last night at $16.96, so this deal offers a nice premium.

This is a good move: DS has been unsuccessful in adding CFD to its arsenal, failing in its attempt to buy CD-adapco (now part of Siemens). Even thought the Abaqus team has been working on a home-grown solution for several years, Exa will bring an established, ready-made solution and 350 or so experts.

More after the call.