Both companies are listed in the NASDAQ stock market and the announcement of a definitive agreement under which Synopsys will acquire Ansys has so far not caused significant excitement among investors. Under the terms of the agreement, Ansys shareholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share, representing an enterprise value of approximately $35 billion based on the closing price of Synopsys common stock on December 21, 20233.
According to the announcement, bringing together Synopsys' semiconductor electronic design automation (EDA) with Ansys' broad simulation and analysis portfolio will "create a leader in silicon to systems design solutions."
"The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity. 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 to help maximize the capabilities of technology R&D teams across a broad range of industries," says Sassine Ghazi, President and CEO of Synopsys. "This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees."
"For more than 50 years, Ansys has enabled customers to design, develop and deliver cutting-edge products that are limited only by imagination. By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation," states Ajei Gopal, President and CEO of Ansys. "This transformative combination brings together each company's highly complementary capabilities to meet the evolving needs of today's engineers and give them unprecedented insight into the performance of their products. Ansys has a strong foundation, as demonstrated by preliminary annual contract value ("ACV") results for Q4 that are expected to exceed the high end of our guidance, and I am confident that building on our partnership with Synopsys will position us well to deliver even greater value for our customers, partners and shareholders. The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys' traditional customers. I am proud of all that our employees do every day to make Ansys and our customers successful and look forward to the combined company achieving even greater heights in this next chapter."
"Since inception 37 years ago, Synopsys has been an innovation pioneer, central to world-changing semiconductor advances in computation, networking, and mobility, and now enabling the new era of 'pervasive intelligence'," adds Aart de Geus, Executive Chair and Founder of Synopsys. "Joining forces with Ansys, a company we know well from our long-standing partnership, is the latest example of how Synopsys remains at the forefront. Our Board and management team carefully evaluated our top strategic options to lead and win in this fast-growing new wave of electronics and system design. The technology-broadening team-up with Ansys is an ideal, value-enhancing step for our company, our shareholders, and the innovative customers we serve."
Synopsys is convinced that the complexity of today's semiconductor systems demands the integration of semiconductor design and simulation and analysis to ensure interconnected systems function properly in real-world settings. "A paradigm shift is clearly underway as companies race to deliver on this era of pervasive intelligence, where AI and smart technologies are omnipresent and interconnected. To capitalize on this shift, the technology industry is converging on a silicon-to-systems approach to innovation. As the company at the heart of silicon and systems, Synopsys was made for this moment – there is no one more capable of helping companies innovate for this new era of pervasive intelligence", stated Sassine Ghazi.
Combining Synopsys' EDA technology with Ansys' established simulation and analysis capabilities could potentially provide that "powerful and system-focused approach to innovation." Synopsys also states that all Ansys customers, including those outside of the semiconductor industry, can benefit from access to a comprehensive portfolio of products and technologies that will drive innovation.
Synopsys and Ansys have had a successful and growing partnership since 2017 and the two companies intend to combine their highly complementary solutions, creating a deeply integrated suite of software tools for model-based analysis of complex systems.
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. Until then, many Ansys users will consider quickly migrating to COMSOL.
www.ansys.com
www.synopsys.com
