ANSYS and Ansoft Corp. have signed a definitive agreement whereby ANSYS will acquire Ansoft for a purchase price of approximately $832 M in a mix of cash and ANSYS common stock. Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Ansoft stockholders will receive $16.25 in cash and 0.431882 shares of ANSYS common stock for each outstanding Ansoft share.

The transaction is subject to customary closing conditions, regulatory approvals and approval by the Ansoft stockholders. Once the transaction has been completed Ansoft stockholders will own approximately 12 percent of the combined company on a pro forma basis, Ansoft will become a wholly-owned subsidiary of ANSYS and its common stock will cease trading on NASDAQ.

ANSYS is a global innovator of simulation software and technologies designed to optimize product development processes. The acquisition of Ansoft is the company’s first foray into the broader EDA software industry and is expected to enhance the breadth, functionality, usability and interoperability of the combined ANSYS portfolio of engineering simulation solutions. The combination is expected to increase operational efficiency and lower design and engineering costs for customers, and accelerate development and delivery of new and innovative products to the marketplace.

The complementary combination of both companies’ software products and services is expected to give ANSYS one of the most complete, independent engineering simulation software offerings in the industry, reaffirming and strengthening its commitment to open interface and flexible simulation solutions that are primarily driven by customer demand, flexibility and choice. With over 40 direct sales offices and 21 development centres on three continents, the combined company will employ approximately 1700 people.