AltX-listed Ansys is in the process of acquiring industrial equipment supplier Profitek Industrial Communications, Ansys said on Friday.
The deal will see the engineering solutions provider pay an upfront R40-million – 30% in cash and the balance settled with Ansys ordinary shares – with a R10-million earn-out or claw-back option in place, ensuring a minimum purchase price of R30-million and a maximum purchase price of R50-million.
The price will remain subject to the performance of Profitek during the financial years ending February 28, 2018 and February 28, 2019.
In the company’s pursuit to become a digital technology solutions provider that leverages its own intellectual property to provide world-class products for global distribution, the acquisition is aimed at enhancing Ansys's safety and productivity business division.
The deal remains subject to the completion of detailed financial, tax and legal due diligence; the commitment of selected senior staff and management to continue their employment with Profitek during the earn-out period; the approval of the transaction from the boards of Ansys and Profitek; and all other statutory and regulatory approvals and requirements required, among others.