Keysight to buy French real time digital twin pioneer
Keysight Technologies is to buy French virtual prototyping and digital twin pioneer ESI in a deal worth €913bn.
The ESI group’s software simulates a product’s behaviour during testing and real-life use, creating a real time digital twin. The company’s portfolio is highly differentiated, with predictive simulation technology for the most challenging system designs in automotive and aerospace development and customers ranging from Daimler and Audi to Boeing and Rolls-Royc.e
ESI Group’s real-time digital twin solutions combine model-driven simulation with data-driven test to create virtual simulations, and its immersive industrial solutions enable workflow automation and virtual manufacturing.
The ESI Group will be added into Keysight’s electronic design and test portfolio to expand its software prototyping capabilities into computer-aided engineering.
“Keysight’s acquisition of ESI Group accelerates our strategy of providing software-centric solutions with virtual prototyping and advanced simulation capabilities,” said Satish Dhanasekaran, President and Chief Executive Officer of Keysight. “Keysight and ESI Group share rich cultures of innovation and strong commitments to solving customers’ most complex challenges, which will enable value creation for all stakeholders. The Keysight team looks forward to working with the world-class talent at ESI Group to unlock opportunities and drive our combined success.
“I am delighted for ESI to announce this significant milestone today with Keysight. Over the past four years, our entire team has been dedicated to transforming ESI Group into a leading actor in the industrial software and simulation sectors,” said Cristel de Rouvray, Chief Executive Officer of ESI Group.
“This combination with Keysight is a testament to the success of the work carried out over the years and will enable ESI to enter a new phase of its development. The core values, vision, and ambition that have driven Keysight over its long and reputable history and under its current leadership are perfectly aligned with those of ESI Group: pioneers enabling innovation for industry. I trust this operation is the promise of an exciting and sustainable future.”
Completion of the acquisition of the controlling block of ESI shares is expected to take place during the fourth quarter of calendar year 2023, with the tender offer to occur shortly thereafter. The offer of €155 per share is a 72% premium on the recent share price.
“[This] is the culmination of a well-considered process and several years of transformation. It accurately recognizes the value of the work carried out by the leadership team and reflects the significant role ESI holds in the industrial software ecosystem. I, along with the entire Board, unanimously welcome this operation, and believe that it is in the best interest of the Company, its employees, its clients, its shareholders and all other key stakeholders,” said Alex Davern, Chairman and independent director of ESI Group
www.keysight.com; www.esi-group.com
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