In a significant development within the technology sector, Synopsys (SNPS) has unveiled plans to acquire ANSYS (ANSS) in a deal valued at approximately $35 billion. The announcement has already impacted ANSYS shares, which fell in premarket trading following the news.
Under the terms of the agreement, ANSYS shareholders will receive $197 in cash and 0.3450 shares of Synopsys for each ANSYS share they hold. This combination results in an enterprise value of around $35 billion, calculated based on Synopsys’ closing price on December 21, 2023.
The deal, expected to close in the first half of 2025, will see ANSYS shareholders owning approximately 16.5% of the combined company. Synopsys plans to finance the $19 billion cash consideration through a mix of cash on hand and debt financing, with $16 billion in fully committed debt financing.
The implied per-share amount of $390.19 represents a premium of about 29% over ANSYS’ closing stock price on December 21 and a premium of approximately 35% to ANSYS’ 60-day volume-weighted average price.
Synopsys and ANSYS anticipate that the merger will create a powerhouse in silicon-to-systems design solutions by combining Synopsys’ semiconductor electronic design automation (EDA) with ANSYS’ extensive simulation and analysis portfolio. The companies assert that this integration will meet the growing demand from customers, fostering accelerated growth and expanding the total addressable market.
Sassine Ghazi, President and CEO of Synopsys, emphasized the significance of the deal in the context of industry trends, stating, “The megatrends of AI, silicon proliferation, and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity.” Ghazi added that the combined capabilities of Synopsys and ANSYS would offer a comprehensive approach to innovation, maximizing the potential of technology research and development teams across various industries.
Aart de Geus, Executive Chair and Founder of Synopsys, described the collaboration with ANSYS as an “ideal, value-enhancing step” for both companies, their shareholders, and the innovative customers they serve. The acquisition builds upon a seven-year partnership between the two companies and is poised to shape the future landscape of technology solutions.
On Tuesday morning, at 8:53 a.m., earthquake tremors were felt in Kishtwar district of Jammu and Kashmir. Read more.
