DS said in a statement that the ABAQUS purchase is a significant step to reshape the large but currently fragmented simulation software market, in which most companies still use niche applications rather than unified solutions.
According to industry analysts, the simulation software market is estimated at $2.35 billion today and is expected to grow to $4 billion in the next five years, with average growth of 12 percent per year. Many applications currently in use are internally developed programs, and current market figures do not take those applications into account.
DS added that ABAQUS is well recognised for its technology, which is capable of scaling from simple to the most demanding simulations, an example of which is a drop-test simulation that enables users to observe the behaviour of all of the internal components of a mobile phone.
“With the best teams, we can transform the industry,” said Bernard Charlès, president and CEO, Dassault Systèmes. “Together, we will enable our customers to experience virtually what their customers will experience using their products in the real world.”
The transaction is subject to the satisfaction of certain customary conditions and approval by certain regulatory authorities. Neither Dassault Systèmes nor ABAQUS will require a shareholder vote. Dassault Systèmes expects that the proposed acquisition could be completed by the end of its third fiscal quarter.