Synopsys to Acquire Ansys in $35B Deal

Synopsys, a prominent semiconductor design software manufacturer headquartered in Sunnyvale, California, has recently announced a significant acquisition move. The company is set to acquire Ansys, a simulation software firm, in a transaction valued at around $35 billion, comprising both cash and stock.

This strategic acquisition by Synopsys aims to broaden its customer base and enhance its product suite within the electronic components sector. Synopsys, known for its leadership in semiconductor design software, competes with major players like Cadence Design Systems.

Ansys specializes in the development of simulation software crucial for engineers in predicting real-world product performance. Engineers leverage Ansys' structural analysis software to streamline manufacturing processes, reduce costs, and expedite product launches.

Renowned analyst Niraj Patel has characterized this acquisition as a "strong strategic fit" for Synopsys.

In a recent milestone, Synopsys completed the acquisition of PikeTec GmbH, a German software company focused on autonomous driving, in August 2023. This transaction, valued at $200 million, underscores Synopsys' commitment to innovation and expansion.

Former CEO Aart de Geus Brisk mentioned in an interview that, given the lifting of existing export restrictions, Synopsys may explore increased product sales to China.

As of the fiscal year ending October 31, 2023, Synopsys reported robust sales of $5.84 billion. Analysts project a 13% revenue growth for Synopsys in the fiscal year 2024. Meanwhile, Ansys anticipates reaching $2.26 billion in sales for 2023, with analysts forecasting a 10% growth for the company in the current year.