ESI GROUP SA

ESI GROUP SA

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Company Overview
ESI Group is a publicly quoted company whose line of business is designing, marketing and distribution of prototype testing software and the provision of related services. These products are used in applied mechanics, namely numerical simulation of prototype and manufacturing process engineering such as crash test, drop test, stamping, casting, welding, aero-dynamics, aero-acoustics, electro-magnetics and bio-mechanics. The company also provides consultancy, support and training services. ESI was created in France in 1973 by Alain de Rouvray, Chairman and President with three other Berkeley Ph.D.s colleagues and partners (Jacques Dubois, Iraj Farhooman, Eberhard Haug). The company has its registered office and corporate headquarters situated in Paris Cedex 16, France.
ESI Group is a recognized global and leading provider of virtual prototype testing software products which enhance product design and manufacturing processes with the use of realistic material physics, to foster “Simulation Based Design” (SBD) for “Virtual Product Development” (VPD).
The company’s development strategy is based on the advent of the remote digital factory. The concept is based on providing all players with a common digital prototype, on which they will be able to operate simultaneously.
The company has created close partnership with leading hardware and software suppliers, namely, Bull, Hewlett-Packard, IBM, Intel, Sun and Voltaire. Its customers include BMW, Skoda, Hyundai and Arcelor.
ESI Group also provides high value-added services, worldwide through its subsidiaries located in Europe, Asia and the United States. In February 2006, the company acquired the branch of IPS International for digital simulation services in engineering applications (CAE), as well as the intellectual property rights to their virtual models “H-Models”.
Business Summary
The Company specializes in the design, development and marketing of software packages designed for performing virtual testing (digital simulations for prototypes, manufacturing processes and product behavior). Net sales break down by activity as follows:
– sales of licenses (75%);
– services (24.5%): consulting, training and research and development services;
– other (0.5%).
Net sales are distributed geographically as follows: Europe (48.7%), Asia (34.9%) and America (16.4%).
Description and history
The Company specializes in the design, development and marketing of software packages designed for performing virtual testing (digital simulations for prototypes, manufacturing processes and product behavior). Net sales break down by activity as follows:
– sales of licenses (75%);
– services (24.5%): consulting, training and research and development services;
– other (0.5%).
Net sales are distributed geographically as follows: Europe (48.7%), Asia (34.9%) and America (16.4%).
HISTORY
ESI was created in France in 1973 by Alain de Rouvray, current Chairman and President,, with three other Berkeley Ph.D.s colleagues and partners (Jacques Dubois, Iraj Farhooman, Eberhard Haug). The company initially operated as a consulting company for European defense, aerospace and nuclear industries. ESI gradually developed sophisticated simulation techniques based on finite element analysis, and acquired a broad understanding of industrial processes and needs. The company opened a subsidiary in Germany in 1979, ESI GmbH.
In 1985, ESI teamed up with a German consortium led by Volkswagen to become the first company to develop simulation software for analyzing the severe deformations inflicted on a car as a result of a crash-test. This was the first step towards the development of ESI flagship product PAM-CRASH.
In 1991, The Company raised venture capital from Burr, Egan Deleage and changed its structure to become a software editor of Applied Mechanics. To market its software more widely The Company set up subsidiaries in the United States and Japan, and a few years later in South Korea.
In 1997, The Company acquired from Framatome its software subsidiary Framasoft, a leading French provider of mechanical simulation tools (SYSTUS, SYSWELD), especially in nuclear industry. In December 1999, The Company reinforced its leadership in stamping simulation with the acquisition of Dynamic Software, editor of the Optris ‘virtual press’ software.
By its IPO on July 6th, 2000, The Company was successfully introduced on the Paris ‘Nouveau Marchй’ stock market, and raised about 30 millions Euros.
Between 2000 and 2005, The Company pursued an active acquisitions policy by successfully integrating companies such as MECAS, for developing Eastern European markets, STRACO and VASCi (Vibro-Acoustic Sciences), for solutions in noise simulation and acoustic comfort, or L3P, for manufacturing processes of composite materials. ESI Group strengthened its strategic position in the casting and the industrial metallurgy with the acquisition of ProCAST teams and software from UES, a US company, followed by the integration of the Swiss-based software company Calcom. In July 2003 ESI Group acquired from the American vendor EASi, the intellectual property rights to EASi’s CAE simulation design and control software environments. Finally, the acquisition of CFD Research Corporation’s product division in 2004 enabled ESI Group to diversify its business in advanced Fluid Dynamics targeting new market sectors with strong growth potential, including electronics, biotechnology and alternative energies.
In February 2006, The Company confirmed the acquisition of the branch of IPS International for digital simulation services in engineering applications (CAE), as well as the intellectual property rights to their virtual human models “H-Models”. In April 2006, The Company announced the signing of a strategic partnership that aims to take over the Chinese-based company ATE Technology International’s activities, integrating teams which bring an expertise of integrated solutions in the aeronautic sector. Through these operations, The Company aims to complement its services offer with high end projects to promote innovation and realistic simulation adoption and to strengthen its installed base support.
In December 2008, The Company announced the acquisition of Vdot(TM), a US software platform for lean process management from the US company Procelerate Technologies Inc.. Vdot(TM) is an enterprise process decision-making tool that can capture and automate best practices for our customers. As a result, Vdot(TM) naturally complements the range of digital simulation solutions, delivering virtual prototyping integration and synchronization within Product Lifecycle Management (PLM).
Also in December 2008, The Company announced the acquisition of leading US Services provider Mindware Engineering Inc. This acquisition clearly accelerates The Company’s ability to empower Virtual Prototyping in the Simulation-Based Design Fluid Dynamics market. The good cultural fit of the teams will also contribute to strengthen the leading position in the fast growing world of digital simulation to provide high value multi-domain and multi-physics solutions. This acquisition is also in line with the US development strategy.
In 2008 and 2009, The Company strengthened its position and opened a new subsidiary in Italy and in Brazil. The Company’s aim is to extend its worldwide presence to better help customers keep their international competitive edge.
In 2009, The Company expanded into Tunisia with the creation of a ‘near-shore’ services division dedicated to high value-added projects and also strengthened its strategic partnership with the Tunisian firm Acoustica.
In 2010, The Company employs more than 750 high-level specialists worldwide. Headquartered in Paris (France), the company and its global network of agents provide sales and technical support to customers in more than 30 countries.

Created in France by Alain de Rouvray, Chairman and President with three other Berkeley Ph.D.S colleagues and partners (Jacques Dubois, Iraj Farhooman, Eberhard Haug)

Description in French
La Sociйtй est spйcialisй dans la conception, le dйveloppement et la commercialisation de progiciels destinйs а la rйalisation d’essais virtuels (simulations numйriques de prototypes, de procйdйs de fabrication et de comportements de produits). Le CA par activitй se rйpartit comme suit :- vente de licences (75%) ;
– prestations de services (24,5%) : prestations de conseil, de formation et de recherche et dйveloppement ;
– autres (0,5%).
La rйpartition gйographique du CA est la suivante : Europe (48,7%), Asie (34,9%) et Amйrique (16,4%).
Historique :
En 1973, Alain de Rouvray, actuel Prйsident Directeur Gйnйral procиde а la crйation de la sociйtй ESI avec trois collиgues et partenaires ingйnieurs titulaires d’un Ph.D. (Doctorat) de l’Universitй de Berkeley en Californie (Jacques Dubois, Iraj Farhooman, Eberhard Haug). La principale activitй de la jeune sociйtй est le conseil, avec pour principaux marchйs, les industries de la dйfense, du nuclйaire et de l’aйrospatial en Europe. Progressivement, ESI dйveloppe des techniques sophistiquйes dans le domaine de la simulation numйrique tout en acquйrant une bonne comprйhension des procйdйs industriels et des attentes du marchй. La sociйtй ouvre une filiale en Allemagne en 1979, ESI GmbH.
En 1985, ESI rйussit la premiиre simulation numйrique d’un test de collision de vйhicule (crash test en anglais) pour un consortium allemand dirigй par Volkswagen. C’est le dйbut du dйveloppement de l’outil phare de la sociйtй, le logiciel de PAM-CRASH.
En 1991, La Sociйtй obtient des fonds en venture capital par Burr, Egan et Deleage pour entrer dans le domaine de l’йdition de logiciels. Pour faciliter la commercialisation de ses logiciels, ESI Group ouvre des filiales aux Etats-Unis et au Japon et quelques annйes plus tard en Corйe du Sud.
En 1997, La Sociйtй fait l’acquisition de la filiale de Framatome, Framasoft rebaptisйe SYSTUS International, un des principaux йditeurs franзais dans le domaine de la simulation numйrique en mйcanique et en particulier pour l’industrie nuclйaire (SYSTUS, SYSWELD). Avec le rachat, en dйcembre 1999, de l’йditeur franзais Dynamic Software, propriйtaire du logiciel de presse virtuelle Optris, ESI Group renforce sa position de leader dans la simulation d’emboutissage.
Le 6 juillet 2000, La Sociйtй rйussi son introduction en bourse sur le Nouveau Marchй de la Bourse de Paris et lиve environ 30 millions d’euros.
Entre 2000 et 2005, La Sociйtй poursuit une stratйgie de croissance externe soutenue en intйgrant successivement des sociйtйs telles que MECAS, pour renforcer son rйseau de distribution en Europe de l’Est, STRACO et VASCi (Vibro-Acoustic Sciences), pour la simulation du bruit et du confort acoustique, ou L3P, pour la simulation de procйdйs de fabrication de matйriaux composites. La Sociйtй renforce ensuite son positionnement stratйgique dans le domaine de la fonderie et de la mйtallurgie industrielle avec l’acquisition des йquipes et du logiciel ProCAST auprиs de la sociйtй amйricaine UES, suivie par l’intйgration de la sociйtй suisse Calcom. En juillet 2003, La Sociйtй acquiert, auprиs de la sociйtй amйricaine EASi, la propriйtй intellectuelle des logiciels d’Ingйnierie Assistйe par Ordinateur (IAO) d’EASi pour la conception et le contrфle des processus. Enfin, l’intйgration de la division Produits de CFD Research Corporation en 2004 permet а La Sociйtй de diversifier son activitй dans le domaine de la dynamique des fluides visant des secteurs а fort potentiel de croissance, comme l’йlectronique, la biotechnologie et les йnergies alternatives.
En fйvrier 2006, La Sociйtй procиde а l’acquisition de la branche d’activitй Services dйdiйe а la simulation numйrique sur le marchй corйen et des droits de propriйtй intellectuelle de modиles numйriques d’humains « H-Models » de la sociйtй corйenne IPS International. En Avril 2006, La Sociйtй annonce la signature d’un partenariat stratйgique qui dйbouche sur la reprise des activitйs de la sociйtй ATE Technology International Ltd., basйe en Chine, dont les йquipes apportent une expertise mйtier pour les solutions intйgrйes dans le domaine aйronautique. Ces opйrations marquent clairement la volontй de La Sociйtй de dйvelopper son activitй de services а haute valeur ajoutйe auprиs de ses clients pour promouvoir l’innovation et l’adoption de la simulation rйaliste et de contribuer au renforcement de l’assistance а la base installйe.
En dйcembre 2008, La Sociйtй procиde а l’acquisition du logiciel Vdot de gestion des processus de dйveloppement de produits auprиs de la sociйtй amйricaine Procelerate Technologies Inc.. Cet outil facilite la capture et l’automatisation des meilleures pratiques des clients, et complиte trиs naturellement l’offre de solution de simulation numйrique en offrant l’intйgration et la synchronisation dans le «Product Lifecycle Management» (PLM) des tвches de prototypage virtuel.
Toujours en dйcembre 2008, La Sociйtй acquiert la sociйtй de Services amйricaine et leader Mindware Engineering Inc. Cette acquisition permet d’accйlйrer l’adoption du prototypage virtuel dans le marchй CFD de la conception basйe sur la simulation. La compatibilitй culturelle des йquipes renforce la position d’acteur majeur dans le monde en pleine mutation de la simulation numйrique en fournissant des solutions multi-domaines et multi-physiques а haute valeur ajoutйe. Cette acquisition s’intиgre йgalement dans la stratйgie de dйveloppement aux Etats Unis.
En 2008 et 2009, La Sociйtй renforce sa prйsence internationale et ouvre deux nouvelles filiales en Italie et au Brйsil. Avec cette extension gйographique, La Sociйtй vise а apporter un meilleur support а ses clients pour les aider а conserver leur avantage compйtitif au niveau international.
En 2009 s’implante en Tunisie par la crйation d’un pфle ‘near-shore’ de services dйdiйs а des projets а haute valeur ajoutйe et renforce son partenariat stratйgique avec la sociйtй Acoustica.
La Sociйtй dont le siиge social est situй а Paris emploie en 2010 plus de 750 professionnels dans le monde. L’entreprise et son rйseau mondial d’agents offrent des prestations commerciales et techniques dans plus de 30 pays.
Business Line
Designing, marketing and distribution of prototype testing software and the provision of related services
Subsidiary
CALCOM ESI SA
Advisor
PRICEWATERHOUSECOOPERS AUDIT
IPO date
7/6/2000
US SIC Code
7371
Company Address
100-102, Avenue de Suffren

City province or state postal code
75015, PARIS
Phone: +33 1 53 65 14 14
Fax: +33 1 53 65 14 12
Country address: FRANCE
Website url: www.esi-group.com