Ansys Inc. said on Thursday it plans to buy another engineering simulation software company, with products that allow engineers to design power-efficient electronic devices on computers before building prototypes.
Cecil-based Ansys said it will buy Apache Design Solutions Inc. for about $310 million in cash. Apache is a privately owned company in San Jose, Calif., that had filed for an initial public stock offering in March.
Ansys CEO Jim Cashman said the deal, expected to be completed in this year's third quarter, will "take simulation to a new level" and continue to broaden Ansys product offerings.
"Electronics is finding its way into almost every mechanical product," he said during a conference call with financial analysts, and rising electricity costs are pushing the demand for TVs, autos and data centers that use less power.
The Ansys-Apache combination can address engineers' needs in growing markets, such as high-performing mobile devices, Cashman said. Smartphone users love what their gadgets can do, but complain about how frequently they have to recharge batteries, for example.
Simulation software allows product innovators to build and test devices and circuits in a virtual way, before designs are locked in, and to get products to market faster.
The Apache purchase includes about $29 million in cash on Apache's balance sheet and will increase Ansys earnings, excluding one-time costs, in its first full year of combined operations, the companies said. Apache has 275 employees, annual revenue of $46 million and a customer base that includes top semiconductor companies.
Ansys shares ended the day at $54.67, down 31 cents.
In the three-month period ended March 31, Ansys reported a $42.2 million profit, or 45 cents a share, up from $32.4 million, or 35 cents, for the same period a year ago. Revenue was $158 million, compared to $136 million last year. Ansys, founded in 1970, has about 1,700 employees.
Cashman said there is a "fair amount of overlap" in the Ansys and Apache customer lists, and combining the companies will lead to expanded services for those customers.
