Synopsys Moves Forward with Ansys Merger After FTC Order
Deal News | May 30, 2025 | EIN
The Federal Trade Commission (FTC) issued a divestiture order required for the merger of Synopsys Inc. (NASDAQ: SNPS) and Ansys Inc. (NASDAQ: ANSS) valued at $35 billion. The order mandates the divestiture of certain assets to preserve competition in key software markets critical for semiconductor and optical device design. Announced in January 2024, this acquisition is a major component of Synopsys's strategy to reinforce leadership from silicon-to-systems design. The FTC identified overlapping competition in three significant markets and concluded that the merger risked diminishing innovation and increasing consumer costs. As per the FTC's proposed consent order, Synopsys will divest its optical and photonic design software, while Ansys will divest its PowerArtist tool. These divested assets are to be sold to Keysight Technologies. Both companies aim to complete these divestitures within 10 days of Synopsys's acquisition closure. Synopsys, which provides end-to-end solutions across silicon-to-systems design, has secured merger clearances everywhere but in China. Despite the merger prospects, some analysts advise exploring other AI stocks with greater upside potential.
Sectors
- Semiconductor Design Software
- Electronics Design Automation (EDA)
- Antitrust and Regulatory
Geography
- United States – Home to both Synopsys and Ansys and the location of the FTC, which is crucial to the antitrust proceedings.
- China – One of the jurisdictions where merger clearance has yet to be obtained, indicating international regulatory challenges.
Industry
- Semiconductor Design Software – Relevant due to both Synopsys and Ansys's position in providing software solutions for semiconductor and optical device design.
- Electronics Design Automation (EDA) – As both companies operate in Electronics Design Automation, a critical sector for developing electronic systems and semiconductors.
- Antitrust and Regulatory – The FTC's involvement and divestiture order highlight the regulatory and antitrust aspects intrinsic to this merger.
Financials
- $35 billion – The total value of the Synopsys and Ansys merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Synopsys Inc. | Acquiring Company | Company | A company offering comprehensive solutions for silicon-to-system design, pushing the merger with Ansys to expand its footprint. |
| Ansys Inc. | Target Company | Company | A leading provider of multi-physics engineering simulation software, set to be acquired by Synopsys. |
| Federal Trade Commission (FTC) | Regulatory Body | Government | Issued the divestiture order to address antitrust concerns regarding the Synopsys-Ansys merger. |
| Keysight Technologies | Asset Buyer | Company | The purchasing company for the divested assets from Synopsys and Ansys as per the FTC's order. |