VELIZY-VILLACOUBLAY, FRANCE — Dassault Systèmes has entered into a definitive agreement to acquire CST - Computer Simulation Technology, a provider of electromagnetic and electronics simulation software, for 220 million euros ($243 million) in cash.

Completion of the transaction is subject to customary closing conditions, including antitrust approvals in Germany and Austria. Closing is expected in the fourth quarter, and transaction will be immediately accretive to Dassault's earnings.

CST’s 2015 revenue was about 47 million euros ($52 million). Its flagship software, Studio Suite, is used by designers and engineers at more than 2,000 companies in the high-tech, transportation and mobility, aerospace and defense, and energy industries to evaluate EM effects during every stage of electronic system design processes. Customers include Airbus Defense and Space, Bosch Group, Frauscher Sensor Technology and Sirona.

Dassault plans to integrate CST’s solutions into its existing portfolio of industry solution experiences for simulating structural mechanics, multi-body systems, heat transfer and fluids, to address the growing $600 million EM simulation market. This will offer a new industry standard in multiphysics and multiscale simulation of autonomous cars, connected homes, medical equipment, wearable electronics and other smart objects. Customers will be able to quickly create and analyze high fidelity electromagnetic behavioral models that simulate electronic, antenna, electrical device and electromechanical product function across all frequencies and length scales, as well as access design synthesis and simulation tools needed for intricate electronic systems design.

The acquisition further binds Frankfurt, Germany-based CST and Dassault, which last year had begun integrating CST's 3D electromagnetic simulation technology into Dassault's 3DExperience platform.

“Electromagnetism is an essential part of a multiphysics simulation strategy for the development of smart and connected products, and IoT devices—from their complex design, to ensuring the performance, reliability and safety of their interactions with their surrounding environment,” said Bernard Charlès, vice chairman and CEO, Dassault. “The acquisition of CST is part of our larger, ongoing mission to provide 3DExperience universes to explore, accelerate and experience innovation that will achieve a greater harmony between product, nature and life.”

“We know firsthand the formidable design hurdles our customers face today,” said Dr. Bernhard Wagner, one of the managing directors of CST. “Increasingly, multiphysics have to be addressed during the design process in order to develop the most robust products and systems. The 3DExperience platform is the ideal foundation upon which we can pursue our vision of combining our technologies to set the industry standard for realistic simulation and best meet our customers’ needs.”

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