Engineering simulation software and services provider Ansys, Inc. (ANSS) has agreed to acquire OnScale, a provider of cloud simulation. The transaction terms remained undisclosed.
The move will help Ansys offer a cloud-native, web-based user interface for its simulation technologies. Ansys’ present portfolio includes a marketplace and a managed cloud offering that provide customers with scalable access to Ansys simulation that is location-independent. Its Python application programming interface (API) software package helps in developing and deploying new verticalized or use case-specific applications that utilize simulation.
The addition of OnScale’s cloud-native framework further bolsters these capabilities.
Management Weighs In
Senior Vice President of Products at Ansys, Shane Emswiler, said, “Customer needs are varied, and any successful cloud strategy must give customers the flexibility to adapt the use of cloud to their unique simulation challenges. To that end, our cloud strategy addresses the needs of not only existing customers but any engineer, scientist or professional who can benefit from simulation technology.”
Ian Campbell, CEO of OnScale, commented, “OnScale’s cloud-native technology combines the limitless compute power of cloud supercomputers with an intuitive web-based front end, making simulation accessible to anyone. Knowing that OnScale’s technology will now run simulations using Ansys’ industry-leading technology is incredibly exciting for me and my team.”
The transaction is not anticipated to materially impact Ansys’ 2022 financials.
Analyst Take
Rosenblatt Securities analyst Blair Abernethy has reiterated a Hold rating on the stock alongside a price target of $360. Overall, the Street has a Hold consensus rating on Ansys based on three Buys, six Holds, and three Sells. At the time of writing, the average Ansys price target of $341 implies a potential 15.3% upside.
Closing Note
Ansys is a leader in engineering simulation, and this transaction furthers its Pervasive Engineering Simulation strategy. Its broad software portfolio helps clients solve complex design challenges, and the ability to provide cloud-native, web-based UI and frameworks further strengthens its offerings.
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