Hottinger Brüel & Kjr has announced Concurrent Real-Time's acquisition to benefit the VI-grade Virtual Test business unit.
FREMONT, CA: Hottinger Brüel & Kjr, a branch of UK-based Spectris plc, has announced the acquisition of Concurrent Real-Time, Inc., a global supplier of high-performance, real-time analytical hardware and software solutions from Battery Ventures, a Boston-based PE company, for a purchase consideration of $166.7 million (£121.2 million) in cash, according to customary closing conditions. The deal fits with HBK's strategy by offering an end-to-end virtual test ability to complement its conventional strength in physical tests and measurement. The VI-grade Virtual Test business unit will benefit from this acquisition.
With headquarters in Pompano Beach, Florida, USA, Concurrent-RT is a primary developer and supplier of complex real-time operating systems, software, and hardware that provides simulation and control platforms for a wide variety of mission-critical aerospace and automotive applications. As a result, Concurrent-RT and HBK share a range of end-markets where customers demand low-latency real-time solutions using software-in-the-loop (SiL), hardware-in-the-loop (HiL), and people-in-the-loop (PiL).
The highly complementary combination of Concurrent-RT and VI-grade would optimize VI-grade's market-leading presence in simulation software and simulator solutions by improving its dynamic performance and expanding its product range while enhancing distribution capacity and business scope. The merger would result in a large-scale virtual simulation and research business in the high-growth R&D markets of automotive, aerospace, and defense. Concurrent-RT employs about 115 people in the United States, Japan, China, and Europe. Approximately 250 full-time workers are expected to work for the merged entity.
Joe Vorih, CEO of HBK, said, "Our HBK strategy remains clear – to become the preferred partner to our customers as they look to accelerate product development and optimize sensing to improve their products. Both virtual testing and physical testing are critical to the acceleration of product development, and the acquisition of Concurrent-RT significantly strengthens our technology solution and customer offering on this journey."
The acquisition is estimated to be accretive to HBK's EBITDA while also assisting the platform's revenue growth. It is scheduled to close in the second quarter, pending regulatory review and approval.