Synopsys to acquire Ansys in $35bn cash and stock deal

In a stunning development that is set to reshape the technology landscape, Synopsys, a pioneer in semiconductor electronic design automation (EDA), has reached an agreement to acquire Ansys, known for its comprehensive simulation and analysis portfolio. This deal, representing an enterprise value of about $35 billion, is based on the closing price of Synopsys common stock as of December 21, 2023. Ansys shareholders are set to receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share.

A Merger Spurring Innovation Across Industries

The amalgamation of Synopsys’ leading EDA solutions with Ansys’ renowned simulation and analysis capabilities is poised to create a leader in silicon to systems design solutions. This merger is a strategic response to the growing complexity and systemic challenges in AI, silicon proliferation, and software-defined systems. According to Sassine Ghazi, President and CEO of Synopsys, this merger is a natural progression of their successful seven-year partnership with Ansys, aiming to maximize the capabilities of technology R&D teams across various industries.

Tech Giants Synopsys and Ansys to Merge in a Historic Acquisition

Synergy and Growth: The Future of Electronics and System Design

Aart de Geus, Executive Chair and Founder of Synopsys, emphasized the company’s role as an innovation pioneer, central to semiconductor advances across computation, networking, and mobility. This union with Ansys marks Synopsys’ continued leadership in the new era of ‘pervasive intelligence’. The merger is a calculated move to lead and win in the rapidly growing field of electronics and system design.

Enhancing Capabilities and Expanding Market Reach

For Ansys, over 50 years of enabling customer innovation in product design and development will be significantly amplified by joining forces with Synopsys. Ajei Gopal, President and CEO of Ansys, highlighted that this transformative combination will drive unprecedented levels of customer innovation. Ansys’ preliminary annual contract value results for Q4, which are expected to exceed guidance, underscore the company’s strong foundation.

This acquisition is a testament to the evolving nature of the tech industry, where mergers and acquisitions are not just about business growth but about fostering innovation and expanding capabilities. The Synopsys-Ansys deal marks a significant milestone in the industry, paving the way for new advancements in electronics and system design.