Dassault Systemes Acquires Accelrys

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.

If you liked this article you might like

Why Accelrys (ACCL) Is Soaring to a Nine-Year High Today

Top Insider Trades: ACCL ASYS AMH OPK

5 Stocks Insiders Love Right Now

Top Insider Trades: BTX TTGT OFG ACCL