ESI GROUP acquired by KEYSIGHT TECHNOLOGIES
Context
Keysight Technologies acquired 100% of ESI Group through a two-stage process. First, it purchased a 50.6% controlling block from the founding Rouvray family and historical shareholders at EUR155 per share. This was followed by a mandatory tender offer for the remaining shares at the same price. By early 2024, Keysight completed the squeeze-out and delisted ESI Group from Euronext Paris. The acquisition accelerates Keysight's strategy to shift its focus "left" into the design phase of the product lifecycle by integrating advanced predictive simulation and virtual prototyping into its design and test portfolio.
ESI GROUP, which reported an EBITDA margin of [members only] in 2022, is valued in this transaction at an EV/EBITDA multiple of Above 20x, a level significantly higher than the average currently observed in the TMT (Tech, Media, Telecom) sector (14.6x).
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Target
ESI Group is a world-leading provider of Virtual Prototyping software and services. Founded in 1973, the company pioneered the first successful full-car frontal crash simulation. Today, its software replicates the behavior of products during testing and real-life use (Digital Twins), enabling industries like Automotive, Aerospace, and Heavy Industry to replace physical prototypes with predictive physics-based simulations. Its immersive solutions (IC.IDO) allow for collaborative virtual process validation and human-machine interaction simulation.
Ent. Value
€500M–1.5bn
Equity Value
[members only]
Multiples
EV / Revenue
4x–10x
EV / EBITDA
Above 20x
EV / EBIT
Above 20x
Historical Financials (EUR)
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REFERENCES
Valuation range: EV €500M–1.5bn
Revenue range: €100–200M
EBITDA range: €10–30M
EV/Revenue range: 4x - 10x
EV/EBITDA range: Above 20x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ESI GROUP by KEYSIGHT TECHNOLOGIES are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Acquirer: keysight technologies