Dassault Systèmes soaks up Exa, a fluid flow simulation software developer

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Dassault Systèmes has acquired software developer Exa Corp. (Nasdaq: EXA) for approximately $400 million. The deal is expected to result in enhanced 3D technologies for the combined company’s design, engineering, modeling, simulation, and data and process management efforts.

Founded in 1991, Exa distributes simulation software and related support services primarily for vehicle, aerospace and technology providers. The Burlington, Massachusetts-based company engineers software used to “solve the most challenging fluids problems faster and more accurately than traditional methods for aerodynamics, aeroacoustics, thermal management and other fluid-related” needs, according to Exa CEO Stephen Remondi. The target’s portfolio of branded simulation software includes PowerFlow, PowerTherm, PowerDelta, PowerInsight, PowerAcoustics and PowerCool.

Waltham, Massachusetts-based Dassault Systemes is also a software developer. The deal for Exa brings a list of customers that include: BMW, Tesla Inc. (Nasdaq: TSLA), Toyota Motor Corp. (NYSE: TM), National Aeronautics and Space Administration, Embraer SA (NYSE: ERJ) and British Petroleum. With the addition of Exa, the buyer’s 3DExperience software product will be enhanced with a portfolio of Lattice Boltzmann fluid simulation technologies.

The software and technology sector are prime areas of interest for middle-market buyers. Luminate Capital, led by Hollie Moore Haynes, has backed airplane software developer Comply365; New Mountain Capital backed quality management software maker Sparta Systems Inc.; HGGC’s acquiring of data virtualization software maker Denodo; Riverside Partners’ purchase of Calero Software, a developer of expense management software; and Golden Gate agreement to purchase interior design software developer 2020 Technologies.

The Exa deal is expected to close in the fourth quarter of 2017. Foros is acting as financial adviser to Dessault Systèmes, while Shearman & Sterling LLP is serving as legal counsel.

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