The acquisition of Ansys by Synopsys has officially concluded, valued at a staggering $35 billion. With all regulatory approvals, including a critical nod from China, Synopsys has cleared the last hurdle. The merger promises to enhance the engineering solutions landscape, particularly in silicon design, by integrating Ansys’ advanced system simulation mechanisms.
Sassine Ghazi, President and CEO of Synopsys, remarked, “Today marks a transformational milestone for Synopsys.” With a longstanding history in silicon innovation, the company aims to leverage Ansys’ technology to navigate the growing challenges of system integration fostered by the rise of AI-powered products.
The transaction aims to bridge electronics and physics integration, providing solutions tailored to contemporary engineering complexities. For example, it enhances automobile systems’ design capabilities, even before production starts. Agility in chip design and thermal management will be crucial in advancing technology further.
Synopsys intends to expedite the delivery of its initial integrated capabilities by 2026. In this context, Ray Wang, a research director at Futurum, indicates that this acquisition is pivotal for Synopsys in building a comprehensive EDA solution. It aims at expanding beyond standalone chip design by incorporating multi-physics expertise relevant to industries like automotive and aerospace.
However, this extensive merger brought up certain regulatory stipulations. Both the U.S. and European bodies, concerned about anticompetitive risks, have compelled divestitures. Assets in semiconductor design and photonic simulation will now transfer to Keysight Technologies to maintain market balance.
Notably, the Chinese approval, amid complex trade relations with the U.S., illustrates potential easing in tensions between these major economic powers. Such diplomatic maneuvers may further reciprocate through flexible trade policies.
While the merger sees significant revenue impact, the acquisition opens the doors to broaden Synopsys’ market base. This includes expanding into new verticals where Ansys holds substantial expertise.
Despite the anticipated 2025 closure, unexpected U.S. trade regulations delayed proceedings, specifically affecting operations in China. Recent alleviation in export restrictions has alleviated temporary market challenges Synopsys faced, allowing them to reassess their financial predictions this year.
