Acquisition of OpenCFD Ltd., The leader in Open Source software in Computational Fluid Dynamics
- Embracing the ‘Open Source’ business model
- Broad global user base and a brand with substantial visibility in a fast-growing market
- Strong and diversified customer value creation and unique opportunity for business expansion
- Accretive operation
ESI Group, pioneer and world-leader in Virtual Prototyping and Virtual Engineering solutions, today announces the acquisition of OpenCFD Ltd., the leader in the Open Source Computational Fluid Dynamics (CFD) software segment, from SGI, the trusted leader in Technical Computing. ESI Group consequently becomes the owner of the OpenFOAM® trademark, widely recognized in automotive, energy, aerospace and other industry sectors, and assumes responsibility and initiative for the further development, quality and support of the software. ESI and SGI will be expanding their partnership and go to market collaboration to improve accessibility of CFD, at affordable cost, reliable quality, and competitive performance.
Embracing the Open Source Business Model
- OpenFOAM® is a free, open source CFD software family and analysis toolbox. It is developed and packaged by the OpenFOAM® team within OpenCFD Ltd., a UK company, and it is distributed by the OpenFOAM Foundation.
- OpenCFD Ltd contributes software, integrates modules and generates documentation to the OpenFOAM® software; it owns the OpenFOAM® trademark and provides services that support the effective deployment of CFD technology.
- OpenFOAM Foundation is a non-profit organization; it was established for the purpose of ensuring the sustainable distribution of OpenFOAM®, exclusively under a ‘no cost Open Source license’ agreement. ESI will continue to manage the development, production and maintenance of the OpenFOAM Software, for distribution through the OpenFOAM Foundation.
Broad user base and a brand with substantial visibility in a fast-growing market
With a continually enforced quality level that benefits from a vast and interactive user base and developer community, OpenFOAM® is a highly popular software which has achieved strong penetration into major global industrial companies. One million copies of the software have been downloaded since 2005, providing free access to a powerful analysis tool box that meets the requirements of diverse industry sectors in the field of complex and state of the art fluid dynamics numerical simulations, involving multi-species, chemical reactions, turbulence and heat transfer.
Strong customer value creation and a unique opportunity for business expansion
ESI Group has already developed substantial OpenFOAM® expertise thanks to its historical knowhow in CFD and reinforced with its recent acquisition of Mindware. This is a natural and welcome complement to the OpenCFD team competencies, and it will further ensure successful downstream integration. ESI proven knowhow and success in industrial software development will further strengthen quality assurance and enable global support of a viable, trusted, and scalable solution for both large enterprises and small and medium size ones, to be made available via a flexible subscription model.
This acquisition consolidates ESI Group firmly at the leading edge of the evolution of the virtual engineering market, aligned with the increasing demand for Open Source software that in comparison to some incumbent, proprietary solutions may offer better freedom to customize and adapt to the business needs of each customer. This will accelerate the gradual adoption of “End-to-End Virtual Prototyping” by a broader community, through an unparalleled offering of scalable, advanced and integrated solutions, effective web and cloud access, and supporting professional services worldwide.
OpenCFD Ltd. will be incorporated within the Group’s consolidated results from September 11, 2012. The acquisition comprises 100% of the company’s capital, and is being financed by the Group’s credit facilities.
Henry Weller, the creator of OpenFOAM®, co-founder of OpenCFD Ltd and a Director of the OpenFOAM Foundation, comments: "We are delighted to join ESI Group to accelerate OpenFOAM® development and expand support and training services. The advanced capabilities of our Open-Source CFD software OpenFOAM® are widely applicable for automotive, energy, oil & gas, process industries, consumer goods, and heavy industry. This makes our incorporation within the ESI Group well aligned with the Group’s broad industrial vision."
Alain de Rouvray, ESI Group’s Chairman and CEO, adds: “This acquisition is in line with our selective external growth strategy, and it reaffirms our ability to adapt to, welcome and anticipate changes in the Virtual Engineering market. Indeed we believe that the ‘Open source’ software model and the associated use of cloud computing will accelerate the low cost and gradual adoption of numerical simulation and, when applicable, will facilitate the further migration to the high value creation of ESI’s “End-to-End Virtual Prototyping” solutions.
OpenCFD Ltd. and its team of experts will allow us to reaffirm our leadership in CFD as a means to an end, namely Enabling Virtual Engineering for all. And it will also support the diversification of our business sectors and the adaptation of our business models. Important to our ‘go-to-market’ strategy, OpenFOAM®’s broad popularity will provide us with preferred access to its vast and global user base, giving further opportunities for our extended software and services offer, creating substantial value for our clients, staff and shareholders, while opening new, collaborative, innovative and promising perspectives.”
OpenFOAM® and OpenCFD® are registered trademarks of ESI
About ESI Group
ESI Group is a leading innovator in Virtual Prototyping software and services. Specialist in material physics, ESI has developed a unique proficiency in helping industrial manufacturers replace physical prototypes by virtually replicating the fabrication, assembly and testing of products in different environments. Today, coupled with Virtual Reality, animated by systems models, and benefiting from data analytics, Virtual Prototyping becomes immersive and interactive: ESI’s clients can bring their products to life, ensuring reliable performance, serviceability and maintainability. ESI solutions help world-leading OEM’s and innovative companies make sure that their products will pass certification tests - before any physical prototype is built - and that new products are competitive in their market space. Virtual Prototyping addresses the emerging need for products to be smart and autonomous and supports industrial manufacturers in their digital transformation.
Today, ESI’s customer base spans nearly every industry sector. The company employs about 1100 high-level specialists worldwide to address the needs of customers in more than 40 countries. For more information, please visit www.esi-group.com.