Engineering technology group Ansys’s bid to acquire technology-focused investment company Parsec Holdings, as well as 25% of embedded-solutions specialist Parsec and 20% of wireless and data specialist Redline Telecommunications, has been approved by the boards of the targeted companies.

Parsec Holdings held a 75% interest in Parsec, an 80% interest in Redline Telecommunications, a 75% interest in Redline Technologies and 100% interest in property holding company Parsec Properties.

The deal would see Ansys paying R123-million, less the debt associated with the property on the effective date, which was expected to be around R30.3-million.

Fifty per cent of the consideration would be settled in cash, with the balance to be settled through the issuance of ordinary shares in Ansys.

Ansys said the acquisitions were another significant step towards it becoming an intellectual property- (IP-) led provider of technology-driven engineering solutions, producing world-class products for global distribution.

“Although Ansys and Parsec, in general, target the same markets, there is currently very little overlap in terms of product and service offerings between the operations of these companies, and the acquisitions will provide Ansys with access to IP and the scarce skill sets offered by a professional team of 45 engineers,” it noted in a statement.

The deal would also offer the company an opportunity to diversify its income streams by enhancing its mining safety, defence and telecommunications divisions, as well as provide entry into the international defence market.

“The acquisition [will further allow the group] to offer new products to Ansys’s existing clients and markets, as well as add general economies-of-scale benefits,” it outlined.

The Parsec businesses would, meanwhile, benefit from Ansys’s black economic-empowerment credentials in these sectors, as well as its foothold in the complementary railway, mining and telecommunications markets, providing access to Ansys’s existing clients and markets.

The acquisitions remained subject to the conclusion of formal agreements and the fulfilment of certain conditions, including the successful conclusion of a due diligence; the conclusion of requisite funding agreements by Ansys; approval of the acquisitions by Ansys and Parsec boards of directors and shareholders; continuation of employment agreements with key staff members of Parsec as identified by Ansys; the conclusion of restraint of trade agreements; and the necessary regulatory approvals.