ABAQUS Inc., a Providence-based developer of engineering simulation software, has agreed to be purchased by Dassault Systemes, a French firm specializing in 3D and product lifecycle management, in an all-cash transaction valued at about $413 million, the companies said.
ABAQUS, which employs more than 400 people worldwide, half of them in Rhode Island, intends to maintain its local presence, a company official said this week. Just last fall, the firm moved its headquarters to Rising Sun Mills, where it is the largest commercial tenant.
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The two companies said the deal will allow them to make “make realistic simulation accessible to a wider audience and greatly increase ease of use.” It will also allow Dassault to diversify into markets beyond its existing manufacturing base.
The companies cited industry analysts’ estimate that the simulation software market is worth about $2.35 billion today and could grow to $4 billion in the next five years, with average growth of 12 percent per year.
ABAQUS’s owners and management team have unanimously endorsed the sale, which expected to be completed by the end of the third quarter of this year, subject to the receipt of required regulatory approval.
“This agreement represents a historic milestone in the continued evolution of our company and our software,” David Hibbitt, founder and chairman of ABAQUS, said in a news release. “Through our delivery of technologically advanced software and services,
ABAQUS already has a proven leadership position in finite-element-based engineering simulation. This agreement is the basis for the long-awaited wider and more effective deployment of such real-world simulation. This vision, along with Dassault Systemes’ commitment to continued investment in technology leadership, marks a new and exciting chapter in ABAQUS’s history.”
The company’s Web sites are www.abaqus.com and www.3ds.com.
