Ansys buys Ansoft for $832 million

NEW YORK (Reuters) - U.S. engineering software simulation maker Ansys Inc (ANSS.O: Quote, Profile, Research) said on Monday it will buy rival Ansoft Corp ANST.O for about $832 million in cash and stock, boosting the takeover target's stock by about 30 percent.

The deal brings together two U.S. suppliers of high tech software to engineers, used to test and predict how products will behave in the real world.

It comes amid a relative drought of mergers. The value of U.S. deals slumped 56 percent to $195.8 billion in the first quarter as the credit crunch thwarted buyers' ability to finance transactions, research firm Dealogic said on Thursday.

Ansys said the deal, which the boards of both companies have unanimously approved, would modestly boost its earnings in the first full year of combined operations.

Ansys, based in Canonsburg, Pennsylvania, is offering $16.25 in cash and 0.431882 common shares for each Ansoft share. That implies a purchase price of $32.50 per share, the companies said in a statement.

On Nasdaq, Ansoft shares jumped about 30 percent to $30.45, while Ansys fell 9.7 percent to $34.22 early Monday afternoon.

The deal is expected to close in the second quarter, subject to regulatory and other approvals.

Deutsche Bank advised Ansoft, which is based in Pittsburgh.

(Additional reporting by Megan Davies)

(Reporting by Euan Rocha; Editing by Lisa Von Ahn, Richard Chang)