Keysight Technologies will purchase the French software firm ESI Group for nearly $1 billion
Keysight Technologies, a company headquartered in the United States, announced its intention on Wednesday to purchase ESI Group, a France-based company, for a sum of 913 million euros ($995.81 million).
On Wednesday, electronic equipment manufacturer Keysight Technologies announced its plans to acquire a controlling stake in ESI Group, a French software company, in a deal valued at 913 million euros ($995.81 million).
Under the agreement, Keysight will purchase ESI shares at a price of 155 euros per share in cash, representing a significant 72 percent premium over ESI’s closing price on May 17. This acquisition aligns with Keysight’s strategic goal of expanding its software-centric solutions by integrating virtual prototyping and advanced simulation capabilities.
Keysight has entered into exclusive negotiations with select ESI Group shareholders, collectively holding a 50.6 percent stake in ESI’s share capital and 55.8 percent of theoretical voting rights. Keysight’s CEO, Satish Dhanasekaran, expressed enthusiasm about the acquisition, highlighting the potential for accelerated growth and enhanced offerings resulting from the combination of the two companies.
After finalizing the agreement, Keysight will initiate a compulsory tender offer to acquire the remaining outstanding shares of ESI Group, according to their announcement.
In a statement, Keysight highlighted that the transaction will augment their software revenue and boost their annual recurring revenue (ARR).
With operations spanning over 15 countries, ESI Group offers its services and solutions and employs approximately 1,000 individuals.
