Ansys stockholders approve $35bn acquisition by Synopsys

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In a pivotal move set to reshape the technology sector, ANSYS, Inc. (NASDAQ: ANSS) stockholders have overwhelmingly approved its acquisition by Synopsys, Inc. (NASDAQ: SNPS), with a deal enterprise value of approximately $35 billion. This merger was endorsed at a special meeting of shareholders, where about 98.7% of the votes cast supported the transaction. This reflects approximately 83.8% of all outstanding Ansys shares as of the record date, April 9, 2024.

Under the terms of the merger agreement, Ansys shareholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each share they own. This valuation was determined based on the closing price of Synopsys stock on December 21, 2023. The transaction is anticipated to close in the first half of 2025, pending satisfaction of all closing conditions, including necessary regulatory approvals.

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Strategic Implications of the Merger

Ajei Gopal, President and CEO of Ansys, emphasized the transformative nature of this merger, stating, “Our stockholders overwhelming approved our merger with Synopsys because they recognize that this is a transformative combination that will create a leader in silicon-to-systems design solutions.” He highlighted the potential for this combination to reshape everyday products and open new opportunities for Ansys’s customers, partners, and employees.

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The integration of Ansys’s comprehensive simulation and analysis capabilities with Synopsys’s leading electronic design automation (EDA) solutions is expected to address the increasing complexities and challenges faced in AI, silicon proliferation, and software-defined systems. This merger is seen as a strategic expansion of the successful seven-year partnership between the two companies, aiming to maximize the capabilities of technology research and development teams across various industries.

Broader Industry Impact

The merger between Ansys and Synopsys represents a significant development in the tech industry, particularly in the areas of semiconductor and systems design. Sassine Ghazi, President and CEO of Synopsys, described the merger as “a natural progression” of their longstanding collaboration, which has been instrumental in driving innovation across multiple sectors.

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Regulatory and Final Steps

Ansys plans to file the final vote results of the Special Meeting, as certified by the independent Inspector of Elections, on a Form 8-K with the U.S. Securities and Exchange Commission within four business days. This filing will mark one of the final procedural steps towards completing a merger that promises to redefine industry standards and enhance competitive edges in a fast-evolving market.

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