BY Fraser Tennant
In the largest technology acquisition in over a year, electronic design automation (EDA) company Synopsys is to acquire engineering simulation leader Ansys in a transaction with an enterprise value of approximately $35bn.
Under the terms of the definitive agreement, Ansys shareholders will receive $197 in cash and 0.3450 shares of Synopsys common stock for each Ansys share. Ansys shareholders are expected to own approximately 16.5 percent of the combined company on a pro forma basis.
Upon completion of the transaction, Synopsys’ pioneering semiconductor electronic design automation (EDA) and Ansys’ broad simulation and analysis portfolio will create a leader in silicon to systems design solutions.
“The megatrends of artificial intelligence, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity,” said Sassine Ghazi, president and chief executive of Synopsys. “Bringing together Synopsys’ industry-leading EDA solutions with Ansys’ world-class simulation and analysis capabilities will enable us to deliver a holistic, powerful and seamlessly integrated silicon to systems approach to innovation.”
According to both companies, this combination brings together their highly complementary capabilities to meet the evolving needs of today’s engineers and give them unprecedented insight into the performance of their products.
“This acquisition will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys’ traditional customers,” said Ajei Gopal, president and chief executive of Ansys.
The combined company expects to achieve approximately $400m of run-rate cost synergies by year three post-closing and approximately $400m of run-rate revenue synergies by year four post-closing, growing to more than approximately $1bn annually in the longer-term.
The transaction is anticipated to close in the first half of 2025, subject to approval by Ansys shareholders, the receipt of required regulatory approvals and other customary closing conditions.
Mr Ghazi concluded: “This acquisition is the logical next step for our successful, seven-year partnership with Ansys and we look forward to working closely with the Ansys team to realise the benefits of this combination for our customers, shareholders and employees.”
News: Synopsys to buy engineering software firm Ansys in $35 billion deal