Synopsys plans to acquire simulation software company Ansys for $35 billion (€32 billion).
The acquisition of software developer Ansys could become the largest in the tech sector since Broadcom’s $69 billion acquisition of VMware last year. The two parties, working together in several areas, had discussed a possible deal since late last year. Ansys was exploring options for selling the company after design software specialist Cadence Design Systems (CDNS) expressed interest.
Integrated solutions
The acquisition of Ansys gives Synopsys a simulation software provider. This software allows aerospace, defence, automotive and energy companies to analyze their products. The software represents a competitive advantage over Autodesk Fusion 360, AutoCAD and Dassault Systemes’ Solidworks.
For its part, Synopsys, as a chip design specialist, is an essential player for major chip makers Intel, AMD and Nvidia. It also supplies its technology to the likes of Microsoft and Google.
According to Synopsys CEO Sassine Ghazi, the acquisition’s goal is to provide more integrated solutions, especially when it comes to merging Synopsys’ electronic design automation (EDA) tools with Ansys’ simulation and analysis portfolio.
Potential opposition regulators
The final acquisition is scheduled for the first half of 2025. The deal could potentially still face problems from regulators, Reuters writes. The Chinese regulator, in particular, could throw a spanner in the works, as approvals are increasingly difficult to predict.
In the unlikely event that the deal does not go through, including due to competition issues, Synopsys must pay Ansys a termination fee of $1.5 billion. Should Ansys accept a better offer from another party, that company must pay Synopsys a fine of $950 million.
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