ANSYS (ANSS) to Acquire Rocky DEM to Enhance Software Offering
ANSYS ANSS has announced the acquisition of Engineering Simulation and Scientific Software’s (ESSS) subsidiary - Rocky DEM. The acquisition of Rocky is not expected to have a significant impact on Ansys' financial performance in 2023.
Rocky is a software package that uses the discrete element method (DEM) to simulate the behavior of discrete materials and particle-laden free-surface flows across various verticals. Rocky simulations provide valuable insights to help companies address sustainability concerns and manage their resources effectively.
The acquisition of Rocky will allow Ansys to offer its customers a broader range of engineering simulation software solutions by integrating Rocky's DEM tools and expertise.
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The current acquisition is a continuation of Ansys’s and ESSS’s collaboration in 2021 to develop DEM workflow to effectively analyze particle movement across several industrial applications.
Ansys' acquisition of Rocky will provide customers with ongoing access to high-quality particle modeling tools seamlessly integrated with other Ansys solutions. This will enable them to solve a wider range of problems involving discrete particles.
In addition, the acquisition will allow Ansys to incorporate Rocky technology into its existing portfolio, creating long-term synergies and enabling the inclusion of Rocky into the PyAnsys framework.
ANSS is the global leader in the high-end design simulation software industry. The company offers simulation solutions for developing next-generation 5G product designs, autonomous vehicles, Internet of Things products and high-performance chips for advanced driver assistance systems.
In October 2022, the company announced that it is set to acquire orbital thermal analysis provider — Cullimore and Ring Technologies or C&R Technologies. The buyout will aid ANSS in bolstering its position in the simulation solutions market, especially in the lucrative Aerospace as well as defense and private space industry verticals.
Though acquisitions have enabled the company to expand its product portfolio, its balance sheet has been negatively impacted in the form of a high level of goodwill and intangible assets, which totaled approximately $4.27 billion or 69.3% of total assets as of Sep 30, 2022.
In the past year, shares of ANSYS, carrying a Zacks Rank #3 (Hold), have lost 36.7% of their value compared with the industry’s decline of 25.4%.
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