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 - Get Report) and Pfizer (PFE - Get Report) , 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.