Ansys to Acquire Aerospace Software Company AGI
Ansys will acquire Analytical Graphics, Inc. (AGI), which provides simulation and modeling for aerospace, telecommunication, and defense and intelligence applications.
Ansys is purchasing the company for $700 million, 67% of which will be paid in cash, and 33% in Ansys common stock. Ansys anticipates obtaining new debt financing to fund a significant portion of the cash component of the purchase price. The transaction is expected to close in the fourth quarter of 2020. Both companies are based in Pennsylvania — Ansys in Pittsburgh, and AGI in Exton.
Ansys said in a Monday release that this acquisition will expand its offerings into products that allow customers to track an orbiting satellite and its connection to ground stations. AGI sells software that helps its customers design, launch, and safely operate satellite constellations, AGI’s software can model a satellite’s orbital mechanics, which the company says allows users to design and operate space systems with improved efficiency. Ansys said that AGI’s customer relationships will help the company reach new aerospace and defense customers, while its sales channel will drive mission-based simulation to its broader existing installed base.
“Ansys’ acquisition of AGI will help drive our strategy of making simulation pervasive from the smallest component now through a customer’s entire mission. It will also expand the use of simulation in the key aerospace sector, where the stakes can be at their highest levels,” commented Ajei Gopal, president and CEO of Ansys.”