Synopsys Inc. said July 17 that it has completed its $35-billion acquisition of Canonsburg, Pa.-headquartered simulation specialist Ansys following approvals from both the United States and China.
Ansys makes simulation tools that show how products will work in the real world, and its tools are used in many industries like aerospace, cars, electronics, and manufacturing. Synopsys is best known for its software that helps design and test computer chips and other electronic parts.
“The increasing complexity of developing intelligent systems demands design solutions with a deeper integration of electronics and physics, enhanced by AI,” Synopsys President and CEO Sassine Ghazi said Thursday. “With Ansys’ leading system simulation and analysis solutions now part of Synopsys, we can maximize the capabilities of engineering teams broadly, igniting their innovation from silicon to systems.”
The transaction, first announced Jan. 16, 2024, combines leaders in silicon design, IP, and simulation and analysis that will position Synopsys to win in an expanded $31-billion total addressable market, according to Ghazi.
“Today marks a transformational milestone for Synopsys,” he said. “For decades, Synopsys has been delivering breakthroughs in silicon design and IP that have fueled chip innovation.”
Former Ansys President, CEO, and board member Ajei Gopal and former Ansys board member Ravi Vijayaraghavan are joining Synopsys’ Board of Directors, effective immediately.
“For half a century, Ansys has enabled innovators across industries to push boundaries with the predictive power of simulation and analysis,” said Gopal. “Our companies have a common culture, a successful longstanding partnership, and now a united mission to empower innovators to drive human advancement.”
Synopsys expects to deliver the first set of integrated capabilities in the first half of 2026. The combined roadmap also includes integrated solutions to advance testing and virtualization of complex, intelligent systems for automotive and other industries, the company said.
Under the terms of the agreement, Ansys shareholders will receive $197 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 Dec. 21, 2023.
Ansys common stock will no longer be listed for trading on the NASDAQ stock market.