- General
- October 26, 2020
- 2 minutes read
Ansys Scoops Up AGI
Ansys, a company that makes simulation software majorly used in aerospace and manufacturing operations, has reached a deal to acquire…
Ansys, a company that makes simulation software majorly used in aerospace and manufacturing operations, has reached a deal to acquire Analytical Graphics Inc (AGI), a privately-backed company that makes simulation and testing software for aerospace, defense, and intelligence applications. Ansys, which is a publicly-traded company, is coughing up $700 million for AGI, 67% of which will be paid in cash and the remaining 33% in stock. Ansys plans to tap the debt market to raise funds that’ll partly cover its acquisition bill.
Ansys says it expects AGI to add between $75 million to $85 million of non-GAAP revenue to its 2020 fiscal results. Upon completion of the acquisition, AGI’s founder and long-time chief executive Paul Graziani will take a role at Ansys, clinching an exit for a company he founded about three decades ago.
Ansys says it expects AGI’s customer relationships to be beneficial to its operations as it seeks new aerospace and defense customers to cater to growth. The company’s acquisition is expected to close in the fourth quarter of this year.
