Synopsys Ansys Acquisition Gets Green Light from European Commission
Deal News | Dec 10, 2024 | EIN
The European Commission (EC) has approved Synopsys' acquisition of Ansys, a $35 billion cash-and-stock deal aimed at expanding Synopsys' market position in the chip design sector. However, to address competition concerns, the approval is contingent on both companies divesting specific business operations, including certain optics, photonics, and power consumption analysis software segments. Synopsys plans to sell its Optical Solutions Group to Keysight Technologies, while Ansys will divest its PowerArtist platform. The deal's completion still requires further regulatory approvals, including reviews by the UK's Competition and Markets Authority, the US Federal Trade Commission, and other global bodies. This acquisition is part of a larger trend in 2024 of significant mergers and acquisitions in the software and 3D printing sectors, as seen with Siemens and Altair Engineering, among others.
Sectors
- Software
- Chip Design
- 3D Printing
- Semiconductors
Geography
- European Union – The European Commission, part of the EU, has played a significant role in approving the acquisition with conditions.
- United States – Both Synopsys and Ansys are US-based companies, and the acquisition is under review by US regulatory bodies.
- United Kingdom – The UK's Competition and Markets Authority is reviewing the acquisition for its impact on the domestic market.
- China – China's State Administration for Market Regulation is involved in reviewing the acquisition with a focus on local market impacts.
Industry
- Software – The acquisition involves companies in the software sector, specifically focusing on chip design and engineering simulation software.
- Chip Design – Synopsys is a major player in the chip design software sector, highlighting the industry focus of the acquisition.
- 3D Printing – Ansys' software is used in the additive manufacturing industry, which is a key part of the 3D printing sector.
- Semiconductors – The acquisition and its regulatory concerns are driven by the impact on the semiconductor sector, where both companies operate.
Financials
- $35 billion – The total value of Synopsys' acquisition of Ansys in cash-and-stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Synopsys | Acquirer | Company | A US-based company that provides chip design software. |
| Ansys | Target Company | Company | A company specializing in engineering simulation software. |
| European Commission | Regulatory Body | Government | The EU's executive body that approves mergers with conditions. |
| Keysight Technologies | Purchaser of Divested Assets | Company | Intended buyer for Synopsys' Optical Solutions Group. |
| Competition and Markets Authority (CMA) | Regulatory Body | Government | The UK authority reviewing the competition impact of the acquisition. |
| Federal Trade Commission (FTC) | Regulatory Body | Government | US regulatory body reviewing the Synopsys and Ansys merger. |
| Fair Trade Commission of Taiwan | Regulatory Body | Government | Taiwanese regulatory authority reviewing the merger for antitrust concerns. |
| State Administration for Market Regulation (SAMR) | Regulatory Body | Government | Chinese body reviewing the $35 billion transaction. |