Synopsys has signed a final $35 billion deal to buy modeling leader Ansys. This is the biggest purchase of an engineering software company ever.
The huge cash-and-stock deal makes Synopsys a giant in electronics design automation software by combining its strengths in semiconductor design tools with Ansys’s strong presence in modeling and analysis.
A company called Ansys agreed to give its owners $197 in cash plus 0.345 shares of Synopsys stock for every ASYS share they own.
When the deal is done, Synopsys’ electronic design automation (EDA) tools for chip design will work with Ansys’ simulation, modeling, and analysis software.
The merger of two technology leaders that work well together creates a powerful player that is better able to take advantage of the growing complexity of smart systems and silicon design.
Synopsys gets important simulation tools to improve its Silicon to Systems method in core EDA and to grow in the area where traditional EDA and systems design meet.
The new business will have an unmatched set of design and verification services at a time when huge increases in computer power are changing the way electronics are made.
The deal is meant to make things easier for customers as they build advanced systems to handle new tasks in AI, machine learning, cloud computing, and other areas that use a lot of silicon.
Aart de Geus, CEO of Synopsys, said that the deal would “accelerate the next phase of innovation as semiconductor and systems complexity increases.
Importantly for Synopsys, combining with Ansys also opens up great chances to expand its business beyond standard EDA and into other important areas.
Ansys has a lot of experience with modeling and analysis solutions for engineering problems that need to be solved quickly and accurately in fields like aerospace, automotive, healthcare, and industrials.
Because of this deal, Synopsys can get into a market worth about $9 billion that is related to digital twins, simulation-driven design, and other cutting edge technologies that aren’t usually used in chip design tools.
“Exceptional, strategically, and financially compelling acquisition” is what De Geus called Ansys. It is expected to create a lot of long-term value for shareholders.
Wall Street experts mostly liked the huge deal because it changed a lot of things strategically. It included both core EDA and hot neighboring markets.
The acquisition will make Synopsys the clear leader in driving the future of electronics innovation for decades to come if it goes through as expected by the end of 2024.