ESI Groups buys analysis software lineup from CFDRC1 Feb, 2004
ESI Group and CFDRC (CFD Research Corp.) formed a strategic partnership under which ESI Group acquired CFDRCs six analysis products, including CFD-ACE+, CFD-FASTRAN, CFD-VISCART and CFD-CADalyzer. ESI Group will develop, commercialize, and support the products. A team of 42 people will join ESI Group from CFDRC. CFDRC's flagship multiphysics simulation software product, CFD-ACE+, handles coupled simulations of fluid, thermal, chemical, electrical, biological, and mechanical events in engineering equipment and systems. CFD-FASTRAN is designed to analyze high-speed flows with multiple moving bodies. New products CFD-VISCART and CFD-CADalyzer facilitate access to advanced fluid dynamics.
The partnership also includes a long-term agreement for collaborative developments with CFDRC's research team. CFDRC will focus on funded research and development contracts and partnerships to deliver numerical and physical models for coupled multidisciplinary simulations and new designs and prototypes of engineering devices for use in biomedical, biodiagnostics, combustion, propulsion, power, and other industries.
The transaction involved a cash payment to CFDRC at closing and a provision for future payments based on sales performances during the next three years.CFDRC software end users revenues totaled approximately $6.5 million for 2003; 55% came from the United States, 25% from Europe, and 20% from Asia and the rest of the world.
Alain de Rouvray, chairman and chief executive officer of ESI Group, said: "This strategic partnership enables ESI Group to diversify its business outside the automotive sector and to enter new market sectors with strong growth potential. The acquisition is a continuation of our strategy to expand our product portfolio and strengthen our market presence in the U.S. by substantially increasing our client base and client support resources."