French software company ESI Group said it’s in talks with potential acquirers, sending its shares surging.
(Bloomberg) — French software company ESI Group said it’s in talks with potential acquirers, sending its shares surging.
ESI is holding preliminary discussions with possible buyers after receiving indicative non-binding proposals, it said in a statement Thursday, confirming an earlier Bloomberg News report. The company remains “fully confident” in its growth plan and there’s no certainty the talks will lead to any deal, it said.
Bloomberg News reported earlier that ESI is working with advisers to explore a sale amid takeover interest from suitors including larger rival Dassault Systemes SE. Private equity firms TA Associates and Francisco Partners are also among firms that have expressed interest in acquiring the business, people with knowledge of the matter said.
Shares in ESI were up 16% at 11:42 a.m. Thursday in Paris, putting the company on track for the biggest daily gain since April 2008 and giving it a market value of €635 million ($687 million).
Representatives for Dassault, TA Associates and Francisco Partners didn’t respond to requests for comment.
ESI develops and produces software that enables engineers to design a product on a computer and test it without building a prototype. The company saw revenue rise about 3% last year to almost €130 million.
–With assistance from Benoit Berthelot and Kamaron Leach.
(Updates with confirmation throughout.)
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