Synopsys acquires Ansys for $35 billion

On January 16, 2024 local time in the United States, Synopsys, a major EDA and semiconductor IP manufacturer, and Ansys, a major industrial software manufacturer, officially announced that the two parties have reached a final agreement on Synopsys' acquisition of Ansys.

Under the terms of the agreement, Ansys shareholders will receive US$197.00 in cash and 0.3450 Synopsys common stock for each Ansys share. Based on the closing price of Synopsys common stock on December 21, 2023, the total acquisition value is approximately 35 billion. Dollar. Synopsys' world-leading chip electronic design automation (EDA) and Ansys' extensive simulation analysis product portfolio will join forces to create a global leader in chip-to-system design solutions.

To complete the massive acquisition, Synopsys plans to fund $19 billion in cash consideration through a combination of cash and debt financing. Synopsys has secured $16 billion in fully committed debt financing.

The transaction is expected to close in the first half of 2025, subject to approval by Ansys stockholders, receipt of necessary regulatory approvals and other customary closing conditions.

Sassine Ghazi, president and CEO of Synopsys, said: "In the face of growing system complexity, the development of mainstream trends such as artificial intelligence, surging chip demand and software-defined systems require higher computing performance and efficiency. Synopsys The powerful combination of the world's leading EDA solutions and Ansys' advanced simulation analysis technology will allow us to provide a comprehensive, powerful and seamlessly integrated innovation paradigm from chip to system, helping technology R&D teams in all walks of life achieve development capabilities. Maximization. This is also the next logical step after our seven-year successful cooperation with Ansys. I very much look forward to working closely with Ajei and the excellent Ansys team to continue to bring more value to our partners, shareholders and employees."

"Since our founding 37 years ago, Synopsys has been a global innovation leader, at the core of the evolution of semiconductor technologies that are changing the world in computing, networking and mobility. Today, we are accelerating the advent of a new era of 'Pervasive Intelligence' We have a long-standing relationship with Ansys, and joining forces is another important milestone in Synopsys' continued efforts to become a global leader. Our board of directors and management team have carefully evaluated our best strategic options in order to achieve this goal. To continue to stay ahead and succeed in a rapidly developing new wave of electronics and system design, the technical cooperation with Ansys can bring more value empowerment to the company, shareholders and even our innovative partners." Xinsi said Aart de Geus, Executive Chairman and Founder of Technology.

Ajei Gopal, president and CEO of Ansys, said: "For more than 50 years, Ansys has been helping customers design, develop and deliver state-of-the-art products beyond their imaginations. By joining forces with Synopsys, we will redouble our efforts. , driving customer innovation to the next level. This transformative alliance will bring together the two companies' highly complementary capabilities to meet the evolving needs of today's developers and provide them with unprecedented insight into product performance. Ansys has a solid foundation, and preliminary annual contract value (ACV) in the fourth quarter is expected to exceed the high end of our guidance range. I believe that by working with Synopsys, we will create better opportunities for customers, partners and shareholders. Great value. Combining with Synopsys will accelerate the development of our combined product portfolio and deliver a higher level of technology innovation that will greatly benefit Ansys' customers. I applaud Ansys employees for the hard work they do every day to make the company and our customers successful. We are proud and look forward to even greater achievements as a result of the combined company."

About Synopsys

Synopsys is a Silicon to Software™ partner to innovative companies developing the electronic products and software applications we rely on every day. As the world's 15th largest software company, Synopsys has long been a global leader in electronic design automation (EDA) and semiconductor IP, and is also playing a growing leadership role in software security and quality solutions. Whether you are a system-on-chip (SoC) developer for advanced semiconductors or a software developer writing applications that require the highest security and quality, Synopsys has the solutions you need to launch innovative, high-performance Quality and safe products.