ESI Announces Result of the Public Tender Offer Initiated by Keysight Technologies for Shares of ESI Group
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Insights
The acquisition of ESI Group by Keysight Technologies represents a significant consolidation within the tech sector, specifically relating to the electronic design automation (EDA) and test solutions market. The mandatory squeeze-out following the public tender offer is a critical move, as it indicates Keysight's intention to fully integrate ESI Group's operations, potentially leading to synergies and streamlined processes.
In the short-term, the squeeze-out facilitates a straightforward path for Keysight to restructure and align ESI Group's strategies with its own. For shareholders, the offer of 155 euros per share provides an exit at a defined price. However, this could raise concerns for minority shareholders who may feel the offer undervalues their investment, particularly if they are being compelled to sell.
In the long-term, Keysight's expanded portfolio could strengthen its competitive position, driving innovation and potentially increasing market share. This acquisition could also signal a shift in market dynamics, as consolidations often lead to increased pricing power and market control for the remaining players.
Keysight's acquisition of ESI Group may alter the competitive landscape of the EDA sector. By analyzing market trends, one can infer that such consolidations are part of a broader industry movement towards integration of software and hardware solutions, catering to the growing complexity of electronic products.
From a market perspective, this acquisition could provide Keysight with a more comprehensive product offering, potentially improving its value proposition to customers. It's important to monitor how competitors respond, either through strategic alliances or their own M&A activities, to maintain market equilibrium.
Furthermore, the suspension of trading for ESI Group's shares is a standard procedure in such acquisitions, preventing market speculation and volatility. It's essential for investors to understand the implications of this suspension in terms of liquidity and the timing of their investment decisions.
The implementation of a squeeze-out is a legal process that occurs when a majority shareholder wishes to acquire the remaining shares of a company. In this context, the French Financial Markets Authority (AMF) plays a crucial role in overseeing the fairness of the transaction and protecting the rights of minority shareholders.
The legal framework ensures that the squeeze-out offer is subject to the same financial conditions as the initial public tender offer, providing a safeguard against potential exploitation. It is important for stakeholders to understand the regulatory environment, as it dictates the terms and timeline of the acquisition process.
Analyzing the legal aspects of such transactions helps in assessing the potential risks and ensuring compliance with the applicable laws and regulations, which is paramount in maintaining investor confidence and market integrity.
Greater than
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ESI Group SA (ISIN code: FR0004110310, Symbol: ESI) (“ESI Group”) (Paris:ESI) announces that the French Financial Markets Authority (Autorité des Marchés Financiers – AMF) published today the final results of the public tender offer initiated by Keysight Technologies Inc., through its fully owned subsidiary Keysight Technologies Netherlands B.V (“Keysight”), for ESI Group’s shares (the “Offer”).
Upon the settlement-delivery of the Offer, which will occur on 18 January 2024, Keysight will hold a total of 6,055,000 ESI Group shares representing
Based on this result, Keysight will shortly formulate a request to the AMF to implement the squeeze-out, as indicated in the Offer Document relating to the Offer.
The squeeze-out will be subject to the same financial conditions as the Offer, namely
Trading on ESI Group’s shares has been suspended pending implementation of the squeeze-out.
The AMF notice of the result is available on its website (https://www.amf-france.org/).
Disclaimer
This press release has been prepared for information purposes only. It does not constitute an offer to buy or a solicitation to sell ESI Group securities in any jurisdiction, including
The dissemination, publication or distribution of this press release may be subject to specific regulations or restrictions in certain countries. Accordingly, persons in possession of this press release are required to inform themselves about and to comply with any local restrictions that may apply.
About ESI Group
Founded in 1973, ESI Group envisions a world where Industry commits to bold outcomes, addressing high stakes concerns - environmental impact, safety and comfort for consumers and workers, and adaptable and sustainable business models. ESI Group provides reliable and customized solutions anchored on predictive physics modeling and virtual prototyping expertise to allow industries to make the right decisions at the right time while managing their complexity. Acting principally in automotive & land transportation, aerospace, and heavy industry, ESI Group is present in more than 15 countries, employs 1,000 people around the world, and reported 2022 sales of
About Keysight Technologies
At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and www.keysight.com.
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1 On the basis of a total of 6,168,593 shares on 31 December 2023, representing 6,282,186 theoretical voting rights, following the loss of double voting rights, as the case may be, attached to ESI Group shares tendered in the Offer.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110723833/en/
ESI Group
Pascale Arnaud
investors@esi-group.com
+33 1 49 78 28 28
orson. – Press & Shareholder Relations
Gael Durand-Perdriel
gael.durand-perdriel@orson.ai
+33 7 85 63 63 19
Source: ESI Group
FAQ
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