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Global engineering simulation software and services provider Ansys Inc. (ANSS) has acquired Phoenix Integration Inc. Phoenix provides software for model-based engineering (MBE) and model-based systems engineering (MBSE).
Terms of the deal are undisclosed, but the acquisition is not expected to significantly impact Ansys’ consolidated financial statements in 2021.
Ansys Senior Vice President Shane Emswiler said, “Companies across industries are benefitting from process integration and MBSE through improved communications, increased product quality, and heightened productivity across their engineering teams.” (See Ansys stock analysis on TipRanks)
Emswiler added, “Acquiring market leader Phoenix integration will complement our acquisition of Dynardo in the process integration and design optimization space, and expand our capabilities providing customers with strong MBE and MBSE offerings to further our pervasive engineering strategy.”
The addition of Phoenix integration will improve the usability of Ansys’ solutions, helping engineers and designers to connect a wider range of tools in the product development process. Software tools are often not connected, so changes have to be made manually, making them hard to trace. With the new MBE capabilities, more of Ansys’ processes will be automated.
On May 7, RBC Capital analyst Matthew Hedberg reiterated a Hold rating on the stock but lowered the price target to $360 (12.1% upside potential) from $380 on account of peer multiple contractions.
Hedberg noted that Ansys’ recent Q1 performance was driven by higher software license revenue, and the analyst expects an improving environment for the company.
Consensus among analysts is that Ansys is a Moderate Buy based on 4 Buys, 3 Holds, and 1 Sell. The average analyst price target of $365 implies 13.6% upside potential.