ESI Group

History

2023: Keysight Technologies bought ESI for $1 billion

On June 29, 2023, industrial equipment maker Keysight Technologies announced an agreement to acquire French software developer ESI Group. The transaction amount is approximately $1 billion.

ESI creates solutions that allow you to form computer models and virtual prototypes of various products. Such digital twins are then used to evaluate product behavior during the manufacturing and operation phases. Virtual prototyping reduces the cost of implementing complex projects and helps accelerate the launch of real products to the commercial market. In addition, the negative impact on the environment is reduced due to the abandonment of the production of traditional prototypes. ESI software is used in a variety of industries.

Industrial equipment manufacturer Keysight Technologies bought software developer ESI for $1 billion

Under the terms of the agreement, Keysight Technologies will pay €155 for each ESI security. This represents a premium of 72% to the price of €90 per share, which was recorded on May 17, 2023 - the last working day before the announcement of the start of preliminary negotiations on the sale of ESI. Thus, the total amount of the transaction will be approximately €913 million, or almost $1 billion at the exchange rate as of June 29, 2023. It is planned to complete the transfer of assets in the fourth quarter of 2023 after obtaining the necessary permits from regulatory authorities.

ESI Group provides services in more than 15 countries and employs about 1,000 employees. The deal will strengthen Keysight Technologies' position in the computer-aided design and digital twin software market. The transaction will be overseen by lawyers for Evercore Group LLC, Rothschild & Cie, McDermott Will & Emery, JP Morgan Securities LLC, Paul Hastings LLP and King & Spalding International LLP.^[1]

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