Synopsys Agrees to Divestitures for $35bn Ansys Acquisition
Deal News | Jan 13, 2025 | EIN
The European Commission has conditionally approved Synopsys' $35 billion acquisition of Ansys, a leading provider of simulation solutions across various industries, including aerospace and automotive. The deal, originally announced in January 2024, requires divestitures due to potential competition concerns in certain software markets. Specifically, Synopsys will divest its optics and photonics software assets, while Ansys will sell its PowerArtist software to Keysight Technologies, addressing market competition issues in optics, photonics, and power consumption analysis software globally. The acquisition aims to strengthen Synopsys' electronic design automation (EDA) segment, broadening its capabilities and market reach, particularly in high-growth sectors. The transaction awaits approval of suitable purchasers for divested assets by the European Commission, following which Synopsys can finalize its acquisition of Ansys. Additionally, the UK’s Competition and Markets Authority has been considering potential competition impacts in the UK, with a decision deadline set for May 2025.
Sectors
- Software & Technology
- Semiconductors
- Regulation & Competition
Geography
- European Union – The European Commission’s involvement in the approval process highlights the geographic relevance of the EU.
- United Kingdom – The UK’s Competition and Markets Authority is evaluating the merger, indicating its significance in the UK market.
- Global – The regulatory scrutiny and divestitures affect global markets, especially given the international operations of Synopsys and Ansys.
Industry
- Software & Technology – This industry involves companies that produce and distribute software and technology solutions, as reflected by Synopsys and Ansys being major players in chip design and simulation software.
- Semiconductors – The acquisition impacts the semiconductor industry, as Synopsys seeks to enhance its electronic design automation capabilities, integral in semiconductor manufacturing.
- Regulation & Competition – The involvement of the European Commission and the UK's Competition and Markets Authority highlights the regulatory and competitive aspects of the transaction.
Financials
- $35 billion – The acquisition deal value for Synopsys to acquire Ansys.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Synopsys | Bidding Company | Company | A leading provider of chip design software looking to acquire Ansys to expand its product offerings in electronic design automation. |
| Ansys | Target Company | Company | A simulation software company serving sectors such as aerospace and automotive, being acquired by Synopsys. |
| European Commission | Regulatory Body | Government | The EC evaluated and approved the acquisition under conditions to ensure competitive markets. |
| UK's Competition and Markets Authority | Regulatory Body | Government | The CMA is assessing the merger's impact on competition in the UK. |
| Keysight Technologies | Purchaser of Divested Assets | Company | The company proposed to purchase Ansys' PowerArtist software as part of the divestiture conditions. |