LONDON Flomerics Group plc (Hampton Court, England) is selling its electromagnetic (EM) simulation software business Computer Simulation Technology GmbH (Darmstadt, Germany) for £1.6million (about $ 3.2million). The purchase will be effective Jan 1, 2008 and be subject to the financial results of the EM business for the year ended Dec 31 2007 and other normal terms and conditions.
Flomerics entered the electromagnetics simulation market in 1999 and has developed the MicroStripes and FLO/EMC products but has only a small share of the market and the directors have concluded that it would be difficult for Flomerics on its own to achieve a strong competitive position in this field.
CST specializes in electromagnetics simulation, and the two companies will have a strategic relationship enabling customers to use a combination of the products both suppliers
Following the sale of the EM business, Flomerics will have a greater focus on fluid flow simulation and its directors believe this will enable it to maintain a strong competitive position in the area of electronics cooling, and to take better advantage of the EFD products acquired through Nika, which are applicable to wider applications of fluid flow simulation.
In the six months ended Jun 30, 2007, the EM Business contributed £0.9million (about $1.8million) to turnover and approximately £0.1million (about $0.2million) to profit before tax (pre allocation of overhead).
CST says the acquisition will provide complementary EM technology with a main interest being the transmission line matrix method, as an alternative time domain approach. All MicroStripes and FLO/EMC customers will continue to receive full technical support from CST GmbH. CST will continue to provide further updates for MicroStripes customers and expects to continue to support and enhance the transfer of geometry from Flotherm models to MicroStripes and FLO/EMC.