Keysight to buy French software firm ESI Group for nearly $1 bln (updated)

ESI SA

29/06/2023 03:48

(Adds deal details in paragraphs 2, 4, 5 & 6; CEO comment in
paragraph 3, ESI background in paragraph 7)
       June 28 (Reuters) - Electronic equipment maker Keysight
Technologies  KEYS.N  said on Wednesday it would acquire a
controlling stake in French software firm ESI Group  ESIG.PA  in
a 913 million euros ($995.81 million) deal. 
    California-based Keysight will pay 155 euros per ESI share
in cash, a 72% premium to its closing price on May 17, when ESI
disclosed preliminary discussions with some third parties on a
possible acquisition of the firm.
    "Keysight's acquisition of ESI Group accelerates our
strategy of providing software-centric solutions with virtual
prototyping and advanced simulation capabilities," Keysight CEO
Satish Dhanasekaran said in a statement.
    Keysight has entered exclusive negotiations with some
shareholders of ESI Group, representing an aggregate of 50.6% of
ESI's share capital and 55.8% of the theoretical voting rights.
    Once the deal is completed, Keysight will launch a mandatory
tender offer for the remaining outstanding shares of ESI Group,
it said. 
    Th deal will increase Keysight's software revenue and annual
recurring revenue, or ARR, Keysight said in a statement.
    ESI Group provides services in more than 15 countries and
has about 1,000 employees. 
    
($1 = 0.9168 euros)

 (Reporting by Lavanya Ahire in Bengaluru; Editing by Subhranshu
Sahu and Rashmi Aich)
 ((LavanyaSushil.Ahire@thomsonreuters.com;))