Synopsys’ takeover plan for Ansys is being investigated. The UK’s Competition and Markets Authority (CMA) is now launching a new investigation, but it is not alone.
Synopsys announced in January that it was acquiring simulation software company Ansys. The deal would cost $35 billion (about 32 billion euros). The deal is already being investigated in the United States and Korea. In May, Synopsys announced that China had also requested cooperation in the investigation into the acquisition, but no official investigation has yet been announced.
Increase sales market by 50%
The two companies have already worked together in several areas, mainly focused on chip designs. The solutions end up in several vertical markets, including smart devices and data centers. Ansys helps development with simulation software that makes it possible to simulate, for example, a product component’s temperature, elasticity, and strength at different stages of the product life cycle.
Ansys’ simulation software does not specifically target chip developers. The automotive and industrial industries are important markets for the company. Therefore, the importance for the chip industry is not small; in the second quarter of 2024, 30% of sales came from this corner.
Therefore, Synopsys has much to gain from the acquisition. On the one hand, it can strengthen its position in the chip design world by better predicting a chip’s future performance. On the other hand, it allows it to address new markets; according to the company, its market would increase by half.
Whether these bright prospects can come true depends on the CMA’s investigation. The competition investigation was announced on Aug. 12.
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