Last Updated on 25th June 2024
Semiconductor design software maker Synopsys announced on Tuesday that it would buy Ansys in a USD 35 billion cash-and-stock deal. The acquisition combines leaders in semiconductor design technology, simulation, and analysis to address the increasing complexity of artificial intelligence. The transaction is expected to close in the first half of 2025.
The acquisition will extend pioneering AI and cloud leadership in EDA (electronic design automation) and simulation. Apart from this, it would be the largest in the technology sector since Broadcom's acquisition of VMware for USD 69 billion in November of last year.
Sassine Ghazi, President and CEO of Synopsys, said, "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." Ghazi also mentioned that the megatrend of AI requires more computing performance and efficiency, given the growing systemic complexity.
Synopsys and Ansys have highly complementary businesses. The combination will enhance the silicon-to-systems strategy of Synopsys both across the core EDA segment and in highly attractive adjacent growth areas such as automotive, aerospace, and industrial, where Ansys has an established presence and successful go-to-market experience.
However, if Ansys accepts another superior proposal, the firm has to pay Synopsys USD 950 million.
Synopsys is a leading American electronic design automation (EDA) company founded in 1986 and headquartered in Mountain View, California. They play a crucial role in the development of the technology that drives our modern world.
They provide software and tools that help companies design and manufacture complex microchips, the brains behind everything from smartphones to medical devices. Think of them as the architects and engineers of the silicon world.
Synopsys technology is used in billions of chips and systems around the world, touching almost every aspect of our lives. From the smartphones we use to the cars we drive, their tools are helping to make technology faster, smarter, and more secure.
Ansys is a leading provider of engineering simulation software that helps companies design and optimize their products across a variety of industries. Founded in 1970, Ansys has been a pioneer in the development of finite element analysis (FEA) software, which is used to create computer models of structures and then analyze their behavior under various conditions.
Today, Ansys offers a wide range of simulation software solutions for a variety of engineering disciplines Additionally, businesses in a variety of sectors—including aerospace, automotive, energy, healthcare, and consumer products—use Ansys simulation software.
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