A strategic extension of ESI Group’s
positioning in virtual engineering modeling
- A company recognized in its field;
with a strong and diversified installed base
- A promising interconnection of two
modeling universes
- Delivering commercial synergies in
the short term
- An accretive operation fully in line
with the Group’s strategic objectives
Regulatory News:
Esi Group (Paris:ESI)
Alain de Rouvray, ESI Group’s Chairman and CEO, says: “This
operation will enable two leaders and two complementary types of
model representation in virtual engineering to come together: ESI,
which has unique expertise in multi-domain solutions for virtual
physical prototypes of components and assemblies of industrial
products in a detailed 3D-4D space, and ITI GmbH, a specialist in
the fast and accurate system simulation in the 0D-1D space. These
different representations necessarily interface to each other and
are intimately complementary when designing an integrated, dynamic
and complex product such as an automobile in motion. This
acquisition allows ESI to expand upstream its positioning in the
industrial product manufacturing value chain. The advantage becomes
critical and disruptive when innovation changes the system
component interaction, which is increasingly common. ESI Group’s
collaborative virtual engineering platform will provide direct
access to a product’s functional features and enable more efficient
and faster decisions to be made at the system level. We are very
confident in this unique and disruptive operation’s value-creating
potential, driven by the substantial and effective commercial and
technological synergies in the short term and immediately
accretive. The operation fully supports the strategic growth and
profitability objectives of ESI.”
A company recognized in its field; with a strong and
diversified installed base
ITI GmbH, whose commercial and technological success is based on
its flagship product, SimulationX, enjoys a global reputation with
a portfolio of 700 clients from every industrial sector in 27
countries. In 2014, ITI GmbH recorded sales of €5.4 million; more
than 60% of it from outside Germany and up 25% on the previous
year.
A promising interconnection of two modeling universes
ITI GmbH’s technological platform, supporting the Modelica
open-source language, stands out through its flexible, easy-to-use
and open architecture. The comprehensive nature of its integrated
library of realistic physical models also represents a major asset
that has enabled ITI to establish itself as the indisputable
reference in a variety of industrial fields where the intersection
of physics disciplines (including mechanics, electronics, control)
is increasingly advanced (e.g. electric or hybrid powertrain
applications).
This acquisition thus provides an opportunity to significantly
extend the field of application of ESI Group’s virtual engineering
solution, which will henceforth be able to offer the combined
real-time simulation of two fundamental, but separated stages in a
product’s development cycle: concept development enabled by
realistic modeling of 0D-1D systems and multi-domain virtual
prototyping deployed in a 3D-4D immersive environment.
Andreas Uhlig , CEO of ITI GmbH, says: “Totally convinced of the
highly-complementary nature of the simulation technology of ITI
GmbH’s functional systems on the one hand and virtual engineering
on the other, we are particularly enthusiastic about joining the
teams at ESI Group. The incorporation of our two technologies
within one offer will bring a new and disruptive value proposition
that we believe will significantly accelerate the democratization
of virtual engineering.”
Delivering commercial synergies in the short term
This new value proposition, building on mature technologies, has
substantial commercial potential given the geographical and
sectoral complementarities of the client portfolios. The quality of
ITI GmbH’s commercial base, including prominent players, such as
Ford, Liebherr, Nikon, Siemens, and Total, in diverse industrial
sectors, represents powerful leverage to accelerate the adoption of
ESI Group’s virtual engineering platform.
An accretive operation fully in line with the Group’s
strategic objectives
Following this operation, ESI will have 96% of its partner’s
capital and the possibility of acquiring the remainder within 3
years. The entire workforce will become an integral part of ESI’s
global operations immediately. The acquisition is entirely financed
through bank debt within the framework of the syndicated bank
facility signed in November 2015. It is directly accretive and in
line with the Group’s objectives to improve its profitability.
You can find all of our press releases at
www.esi-group.com/press
Next events:
2015 annual sales:
March 14, 2016
About ITI GmbH
ITI GmbH based in Dresden, Germany, was founded in 1990 and is
an international IT and engineering service provider. ITI develops
and distributes the simulation software SimulationX for
applications in model-based product development throughout various
industries and the education and research sectors. The company
supports the development of new products with comprehensive
engineering and programming services throughout the entire design
process. Workshops and seminars at the ITI Academy complete the
spectrum of services. More than 700 customers worldwide trust ITI’s
simulation solution ranging from the automotive, energy, medical
technology, aerospace and mining industries to mobile machinery and
the oil and gas sectors. ITI’s customers include renowned names
like ABB, BMW, Baker Hughes, Caterpillar, Daimler, Hitachi, Honda,
Husky, Liebherr, Nikon, Schaeffler, Siemens, Veolia, Volkswagen and
ZF. ITI has about 70 employees. With partners around the world, the
company has a vast network of distributors and service providers
for its simulation software SimulationX.
For more information about the company, visit
www.itisim.com.
About ESI
ESI is a world-leading provider of Virtual Prototyping software
and services with a strong foundation in the physics of materials
and Virtual Manufacturing.
Founded over 40 years ago, ESI has developed a unique
proficiency in helping industrial manufacturers replace physical
prototypes by virtually replicating the fabrication, assembly and
testing of products in different environments. Virtual Prototyping
enables ESI’s clients to evaluate the performance of their product
and the consequences of its manufacturing history, under normal or
accidental conditions. By benefiting from this information early in
the process, enterprises know whether a product can be built, and
whether it will meet its performance and certification objectives,
before any physical prototype is built. To enable customer
innovation, ESI’s solutions integrate the latest technologies in
high performance computing and immersive Virtual Reality, allowing
companies to bring products to life before they even exist.
Today, ESI’s customer base spans nearly every industry sector.
The company employs more than 1,000 high-level specialists
worldwide to address the needs of customers in more than 40
countries.
ESI is listed in compartment C of NYSE Euronext Paris and is
granted “Entreprise Innovante” (Innovative Company) certification
since 2000 by Bpifrance. ESI is eligible for inclusion in FCPI
(venture capital trusts dedicated to innovation) and PEA PME.
For further information, go to www.esi-group.com..
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Investor RelationsESI Group – Europe/AsiaCorentine
Lemarchand, +33 1 53 65 14 14orESI Group –
AmericaCorinne Romefort-Régnier, +
1 415 994 3570orNewCapEmmanuel Huynh or Louis-Victor
Delouvrier, +33 1 44 71 98 53
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