Electronic equipment maker Keysight Technologies said on Wednesday it would acquire a controlling stake in French software firm ESI Group in a 913 million euros ($995.81 million) deal.
California-based Keysight will pay 155 euros per ESI share in cash, a 72 per cent premium to its closing price on May 17, when ESI disclosed preliminary discussions with some third parties on a possible acquisition of the firm.
“Keysight’s acquisition of ESI Group accelerates our strategy of providing software-centric solutions with virtual prototyping and advanced simulation capabilities,” Keysight CEO Satish Dhanasekaran said in a statement.
Keysight has entered exclusive negotiations with some shareholders of ESI Group, representing an aggregate of 50.6 per cent of ESI’s share capital and 55.8 per cent of the theoretical voting rights.
Once the deal is completed, Keysight will launch a mandatory tender offer for the remaining outstanding shares of ESI Group, it said.
Th deal will increase Keysight’s software revenue and annual recurring revenue, or ARR, Keysight said in a statement.
ESI Group provides services in more than 15 countries and has about 1,000 employees.
($1 = 0.9168 euros)
For all the latest business News Click Here
