Synopsys acquisition of Ansys gains UK CMA's nod with conditions

The UK Competition and Markets Authority (CMA) has granted conditional approval for Synopsys’s $35 billion acquisition of Ansys. This decisive move by the CMA bypasses a more rigorous Phase II probe, initially triggered by concerns about diminished competition in UK markets. The announcement in January 2024 underscored Synopsys's pursuit of Ansys to enhance its semiconductor electronic design automation (EDA) offerings. Originally flagged by the CMA in December 2024 due to possible adverse effects on competition, Synopsys and Ansys preemptively suggested divestitures to address the regulatory body's apprehensions. The Phase 1 assessment detailed the overlap of market influence between the two firms across various software products integral to semiconductor chip design and light simulation. Without adequate measures proposed by the companies, the CMA articulated the necessity of a subsequent Phase 2 investigation. Ansys’s simulation solutions, which intersect significantly with offerings from Autodesk and Dassault Systèmes, position Synopsys to strengthen its R&D capabilities with a hybrid approach that marries electronics and physics. Following a comparable review, the European Commission also approved the acquisition in January 2025 under similar conditions.