Exhibit 99.1
ANSYS to Acquire ICEM CFD Engineering
SOUTHPOINTE, PA: August 30, 2000 -- ANSYS, Inc.
(ANSS:NASDAQ), a global leader in design analysis and
optimization software, today announced that it has entered
into a definitive agreement to acquire ICEM CFD Engineering.
The up-front purchase price of approximately $12.4 million
is comprised of both cash and ANSYS common stock. In
addition, the agreement provides for future payments
contingent upon the attainment of certain performance
criteria. ANSYS anticipates closing the deal by the end of
August, and expects to incur one-time charges related to the
write-off of in-process research and development costs, as
well as certain acquisition-related costs. Excluding the
effects of acquisition-related amortization and other
charges, the acquisition is expected to be accretive to
earnings within the fiscal year 2001.
James E. Cashman III, ANSYS President and CEO, stated, "The
ICEM CFD Engineering acquisition is attractive to customers,
shareholders, and employees for its complementary
technology, growth potential, and market presence. It is
consistent with our stated strategy of being the dominant
supplier of engineering simulation solutions. We believe
that by leveraging ANSYS's global sales and marketing
resources with ICEM CFD Engineering's outstanding
technology, market penetration will accelerate, particularly
in high growth market segments such as electronics. We have
been impressed with the people and commitment of ICEM CFD
Engineering and clearly our stated goal of best-in-class
products will benefit from planned deployment of shared
technologies."
Armin Wulf, founder of ICEM CFD Engineering said, "Our
technological excellence in modeling of high end
computational fluid dynamics (CFD) complements the resources
and market leadership of ANSYS in structural, thermal,
electromagnetic, and other types of physics simulation. The
combination, we believe, will greatly strengthen ANSYS's
leadership in important fields of engineering." Wulf
continued, "Our new association with ANSYS affords us the
tremendous opportunity to extend our solution set into new
markets, expanding our customer base and increasing our
operations as the premier integrated solver-independent
modeling environment for computer aided engineering (CAE).
We are very excited to join forces with ANSYS."
ICEM CFD Engineering is a privately held developer and
leading supplier of software for pre- and post-processing of
CFD and other high growth engineering applications. ICEM
CFD Engineering sells these products into a variety of
market segments including the electronics, automotive, and
aerospace industries. Major products include ICEM CFD,
which is the world's leading software specializing in CFD
modeling. ICEM CFD Engineering also leverages its expertise
in modeling and meshing technology through several strategic
partnerships with leading OEM software suppliers in the CFD
market, which ANSYS intends to continue going forward.
During the fiscal year ended October 1999, revenue for ICEM
CFD Engineering was approximately $6.8 million. ICEM CFD
Engineering, which will continue to be headquartered in
Berkeley, California, will operate as a separate subsidiary,
maintaining its products, sales channels, and OEM
relationships.
Some matters discussed in this news release constitute
forward-looking statements under the "safe harbor"
provisions of the Private Securities Litigation Reform Act
of 1995. The actual future results of the Company could
differ significantly from these statements. These include
statements with respect to being the leading supplier of
engineering simulation solutions, accelerating market
penetration, being a technology leader, realizing accretion
to earnings from this acquisition, deploying shared
technologies, expanding our customer base, and closing the
acquisition, these statements are subject to various risks
and uncertainties such as our ability to successfully retain
current ICEM CFD employees, the ability of the acquired
business to maintain its current level of profitability
through the end of 2001, our ability to integrate ICEM CFD
into our business, the emergence of competitive products and
unforeseen technical issues, our ability to protect our
proprietary technology and maintain our technological lead
over competitors, and other risks and uncertainties that are
detailed from time to time in reports filed by ANSYS, Inc.
with the Securities and Exchange Commission, including
ANSYS, Inc.'s 1999 Annual Report and Form 10-K and most
recent Quarterly Report on Form 10-Q.
ANSYS, Inc. is committed to providing the most open and
flexible analysis solutions to meet customer requirements
for engineering software in today's competitive marketplace.
ANSYS, Inc. partners with leading design software suppliers
to develop state-of-the-art CAD-integrated products. A
global network of ANSYS Support Distributors provides sales,
support and training for customers. Information about ANSYS,
Inc. and its products can be found on the Worldwide Web at:
http://www.ansys.com.
Note to editors: ANSYS and DesignSpace are registered in the
U.S. Patent and Trademark Office. All other trademarks and
registered trademarks are the property of their respective
owners.
