French company pays $413 million for ABAQUS

Another Rhode Island technology company has been purchased by a European firm. Providence-based ABAQUS, which has called the Ocean State home since its founding in 1978, was purchased for $413 million cash on May 17 by Dassault Systèmes.

Dassault is a Parisian company that specializes in three-dimensional software. Its acquisition of ABAQUS will more than likely mean more jobs at the Providence location, said Tony Bellantuoni, ABAQUS vice president of human resources and administration.

“We’ll be the primary arm of Dassault’s simulation business,” Bellantuoni said. “We’ll get more work to do for them and more exciting projects … and that will mean growth in staffing.”

The acquisition doesn’t mean a change of address for ABAQUS, which develops nonlinear finite element analysis (FEA) software.

“We have a long history in Providence and very bright prospects in the future in staying in Rhode Island,” Bellantuoni said.

ABAQUS is the second Rhode Island software company to be sold within 30 days. On April 18, Westerly-based Heartlab Inc. announced that Agfa-Gevaert, a Belgian company would acquire all its shares for $132.5 million.

ABAQUS’ leadership wasn’t looking to sell the company, Bellantuoni said. Rather, the sale was a result of the work the two companies have been doing together.

“The company wasn’t for sale per se,” Bellantuoni said. “We were approached by Dassault. There was a prior working and business collaboration and relationship and they knew our capabilities, which are consistent with their future growth strategy.”

Dassault said in a release it expects the acquisition to be an immediate generator of net income. Following the completion of the transaction, the company will release a scientific, open platform called SIMULIA that will allow all types of simulation applications to be integrated.

According to Dassault, the merger will make realistic simulation products more easily accessible and usable to a broader audience. Purchasing ABAQUS is an important step toward unifying the simulation software market, in which many organizations use “niche” software instead of a universal program.

An industry analysis revealed the simulation software market is valued at $2.35 billion, Dassault said. It’s expected to grow 12 percent per year over the next five years to bring it to $5 billion. Bernard Charlès, Dassault’s president and CEO, said the acquisition will allow for a transformation of the industry.

“Together, we will enable our customers to experience virtually what their customers will experience using their products in the real world,” Charlès said.

Bellantuoni said ABAQUS will contribute to Dassault’s growth plans.

“They’ve given us a strong segment and they’re really counting on us to be leaders in the industry,” Bellantuoni said.

ABAQUS will keep both its name and top executives following the completion of the acquisition. Bellantuoni said Mark Goldstein, president and CEO of ABAQUS, will head up the simulation division of Dassault.