Simulation software provider MSC.Software is to acquire all of the common stock of Mechanical Dynamics, developers of the ADAMS virtual prototyping package. The aggregate value of the transaction is approximately $120 million.
The acquisition will be in the form of a cash tender offer and a follow-on merger, both at $18.85 per share, and is subject to customary conditions, including governmental approvals. It is expected that the tender offer will be completed in the second quarter of 2002.
The acquisition of Mechanical Dynamics will expand MSC.Software’s core software offerings in the simulation software market, creating a combined customer base of over 10,000 companies.
ADAMS technology simulates system-level motion, vibration, durability, and controls of mechanical assemblies.
Just last month, Mechanical Dynamics released Version 12 of its ADAMS prototyping software. The new release incorporated four new modules. The first of these was ADAMS/Aircraft Landing Gear, a module for the simulation of the Functional Digital Aircraft. The second was ADAMS/Engine Basic Cranktrain, a package that provides cranktrain modelling capability for any type of engine based on rigid bodies. Third in the lineup was ADAMS/AutoFlex, which allows definition and simulation of flexible components in a single virtual prototyping environment. Last but not least was ADAMS/Chassis, which uses the XML data format for an enhanced set of modelling objects.
In 2001, MSC.Software had $236 million, and Mechanical Dynamics had over $57 million. The combined organisation will employ over 1,700 people in 22 countries.