Undoubtedly, the largest acquisition/merger of 2024 is the one between Synopsys and Ansys, resulting in a stunning deal for EDA technologies dedicated to chips. It is highly unlikely that two companies will merge at this level for the rest of the year or even within the semiconductor sector in a few years.
In the joint statement, it is stated that Ansys shareholders will receive $197 in cash and 0.3450 common shares of Synopsys for each Ansys share. This represents a total value of $35 billion for the shares alone, but the total value of the merger reaches an incredible $110 billion.
With this acquisition, Synopsys becomes the world’s largest EDA technology giant. Synopsys CEO, Sassine Ghazi, commented on the acquisition:
“The megatrends of AI, silicon proliferation, and software-defined systems require more computing performance and efficiency in the face of increasing systemic complexity. The combination of Synopsys’ industry-leading EDA solutions with Ansys’ world-class analysis and simulation capabilities will enable us to offer a holistic, powerful, and seamlessly integrated approach to innovation across silicon and systems, helping to maximize technology R&D teams’ capabilities across a broad range of industries.”
The main reasons for the acquisition include:
– A combination of leading capabilities to meet customer demand: The complexity of modern intelligent systems demands the integration of semiconductor design, simulation, and analysis to ensure interconnected systems function correctly in real-world environments. The combination of Synopsys’ EDA technology with Ansys’ established simulation and analysis capabilities can provide customers with a comprehensive, powerful, and system-focused approach to innovation. All Ansys customers, including those outside the semiconductor industry, can benefit from access to a complete product portfolio and technologies that drive innovation.
– Accelerate strategy and growth in attractive adjacent areas: Both Synopsys and Ansys have highly complementary businesses and significant expansion opportunities. The merger will enhance Synopsys’ Silicon to Systems strategy in both the core EDA segment and highly attractive adjacent growth areas, such as automotive, aerospace, and industrial sectors, where Ansys has a well-established presence and successful marketing experience.
Synopsys expects the transaction to close in the first half of next year, subject to Ansys shareholders’ approval, regulatory measures, and other standard conditions for acquisitions or mergers. Consequently, the two companies will officially begin operating as one in the second half of 2025.