On Tuesday, electronic design automation (EDA) and semiconductor company Synopsys announced it would acquire Pittsburgh-based Ansys for an estimated $35 billion.
The merger will combine Synopsys’ EDA with Ansys simulation and analysis portfolio to create a leader in the silicon to systems design solutions, the companies said. Under the terms of the agreement, Ansys shareholders will receive $197 in cash and .3450 shares of Synopsys common stock for each of their Ansys shares.
“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,” Ajei Gopal, president and CEO of Ansys, said. “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.”
Officials said the acquisition would help meet increasingly complex customer demand to ensure interconnected systems function in real-world settings, as well as accelerate the growth of Synopsys in areas such as Automotive, Aerospace and Industrial sectors where Ansys has an established presence.
“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,” Sassine Ghazi, president and CEO of Synopsys, said. “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.”
The acquisition is expected to increase Synopsys’ total addressable market by 1.5 times to approximately $28 billion.