This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dassault Systemes Acquires Accelrys

Stocks in this article: ACCL GSK PFE CVX PG BA

NEW YORK (The Deal) -- France's Dassault Systemes a maker of 3D design software, will make an agreed $750 million bid for San Diego-based Accelrys  (ACCL) to gain control of its software used in chemical and biological product life cycle management.

Dassault said on Thursday, Jan. 30, it will offer $12.50 per Accelrys share, a $2.78, or 29%, premium to the target's closing price on Wednesday. The offer values Accelrys at an enterprise value of about $660 million, taking into account about $90 million of cash.

The enterprise value equates to 22 times the target's Ebitda of $30 million, based on an earnings forecast provided in company presentation on Sept. 30.

"The transaction is expected to be completed during the second quarter of 2014, subject to Accelrys shareholders tendering a majority of Accelrys' outstanding shares," Dassault said.

A successful bid will expand Dassault's activities in chemical and biological engineering and secure a ready-made roster of blue chip clients, including drug makers GlaxoSmithKline  (GSK) and Pfizer (PFE) , the chemicals units of oil producers Chevron  (CVX) and Royal Dutch Shell  (RDS.A) and consumer goods and manufacturing giants Procter & Gamble  (PG) and Boeing  (BA).

The bid is the latest in a spate of bolt-on deals struck by Dassault, which has spent more than $1.5 billion in the past five years to expand the range of services linked to its core 3D design and product lifecycle software. Dassault last month paid 183 million ($249 million) for Germany's Realtime Technology, which produces photographic images of 3D computer models.

The French company declined to say how it will pay for the Accelrys acquisition ahead of its full-year earnings presentation on Feb. 6. Funding is unlikely to be a problem, Dassault had 1.6 billion of cash on its books at the end of September.

Accelrys has also been an active acquirer, striking eight deals, worth a total $332 million in the past five years, including a transformative, $180 million all share-merger with Symyx Technologies in June 2010. In December, it agreed to pay $50 million for Irish compliance and quality management group Qumas.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs