Smaller names but big strategic $: Synopsys Inc said it would acquire Ansys in a $35 billion cash-and-stock deal. Synopsys will partially finance with $16 billion in debt and some $3 billion in cash on hand; the remaining $16 billion consideration will be in Synopsys stock, giving Ansys shareholders a sizable stake in the post-merger company. It’s one of the largest tech deals in recent years; regulatory scrutiny and the increased cost of borrowing have weighed heavily on M&A. Still, some notable deals have closed recently, and private equity activity in 2023 has suggested there is still appetite from financial buyers. Strategic acquisitions aren’t dead, though. Cisco, for example, announced it would pick up Splunk for $28 billion late last year.
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🟢 Synopsys's $35B Ansys Acquisition Under UK Regulatory Scrutiny The UK's Competition and Markets Authority (CMA) has launched an early-stage inquiry into Synopsys's $35 billion acquisition of Ansys. This move enables stakeholders to provide feedback on the proposed transaction, announced in January 2024. The merger aims to combine Synopsys's chip design software prowess with Ansys's simulation capabilities, establishing a robust chip design and simulation entity. While the merger is anticipated to enhance development processes, concerns about potential market dominance have arisen. Apart from the US Federal Trade Commission, European and Chinese regulators are expected to scrutinize the deal due to the substantial market impact resulting from the consolidation of two key players in the semiconductor design and simulation software sector. The regulatory spotlight on the Synopsys-Ansys deal mirrors the increasing global scrutiny of major tech mergers. With the semiconductor industry growing in strategic importance, regulators are vigilant about preventing consolidation from hindering competition and innovation. The investigations' outcomes could significantly influence the trajectory of chip design and simulation technologies. Synopsys Inc Ansys
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🟢 Synopsys's $35B Ansys Acquisition Under UK Regulatory Scrutiny ➡️ The UK's Competition and Markets Authority (CMA) has initiated an early-stage inquiry into Synopsys's proposed $35 billion acquisition of Ansys. This move allows stakeholders to submit comments on the potential transaction. Announced in January 2024, the deal would combine Synopsys's chip design software expertise with Ansys's simulation capabilities, creating a comprehensive chip design and simulation powerhouse. ➡️ The merger could streamline development processes but also raises concerns about market dominance. The US Federal Trade Commission is already examining the deal, while European and Chinese regulators are expected to scrutinize it as well. This regulatory attention stems from the significant market impact of combining two major players in the semiconductor design and simulation software industry. The CMA's inquiry into the Synopsys-Ansys deal reflects growing global regulatory scrutiny of major tech mergers. As the semiconductor industry becomes increasingly crucial to national interests, regulators are keen to ensure that consolidation doesn't stifle competition or innovation. The outcome of these investigations could have far-reaching implications for the future of chip design and simulation technologies. #VentureNews
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🚀 Exciting News in Tech: Synopsys Acquires Ansys in a Landmark $35 Billion Deal! 🔍 The tech world witnessed a monumental move as Synopsys, a leader in chip design software, announced its acquisition of Ansys, a renowned engineering software firm. This groundbreaking deal, valued at $35 billion, marks a significant stride in the technology sector, particularly in the areas of chip design and electronic systems simulation. 🤝The fusion of Synopsys' semiconductor electronic design automation (EDA) tools with Ansys' simulation and analysis portfolio promises a new era of innovation and integrated solutions. 📈Strategic Growth: This acquisition reflects the growing trend of strategic mergers in the tech industry, aimed at enhancing capabilities and expanding market reach. 💰 The Financials: The deal, involving a mix of cash and stock, is backed by a blend of Synopsys' cash reserves and $16 billion in fully committed debt financing. It represents a 29% premium over Ansys' last close, signalling strong market confidence. 🔎 Looking Ahead: Completion is subject to Ansys shareholder approval, regulatory clearances, and standard closing conditions, with an expected closure in the first half of 2025. This partnership could reshape the future of chip and electronic system design, with potential global impacts. 🤝 A Collaborative Legacy: The roots of this partnership trace back to 2017, emphasizing quality and efficiency in chip design. This acquisition is not just a transaction but a fusion of two tech visionaries. #TechAcquisition #Innovation #Synopsys #Ansys #TechnologyNews #ChipDesign #SoftwareDevelopment
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Mega-Merger ignites 2024 M&A: Synopsys swallows Ansys for $34B! Just two weeks in, and the tech world is already buzzing with a blockbuster deal! Chip giant Synopsys has agreed to acquire software developer Ansys for a whopping $34 billion, marking one of the biggest tech mergers in recent memory. This isn't just a big deal for the companies involved – it's a potential sign of life for the M&A market, which suffered its worst year in a decade in 2023. Could this be the spark that ignites a firestorm of deals in 2024? Here's why this merger is such a game-changer: Synopsys + Ansys = Design & Simulation Powerhouse: Synopsys is a leader in chip design software, while Ansys reigns supreme in real-world product simulation. Together, they'll create a one-stop shop for engineers,streamlining the entire product development process. ⚙️ Mega-Market Expansion: This deal catapults Synopsys into a new league, boosting its market reach and opening doors to new verticals like aerospace and automotive. A Boost for the Tech Ecosystem: If this is the start of an M&A resurgence, it could be a boon for the broader tech ecosystem, potentially fueling investment, innovation, and job growth. What do you think? Is the Synopsys-Ansys deal a signal of a thriving M&A market in 2024? Share your thoughts in the comments! #M&A #TechMergers #Synopsys #Ansys #ChipDesign #Simulation #Innovation #MegaDeal #TechIndustry #InvestmentBanking #2024Outlook
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Synopsys Inc. is reportedly nearing a $35 billion acquisition of Ansys Inc. in a significant cash-and-stock deal, marking one of the potential major tech transactions of the new year. #CBC_Advisors #TechNews #BusinessAcquisition #Synopsys #Ansys #TechAcquisition #BusinessNews #TechnologyDeal
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Another major Semiconductor Industry related Consolidation in final stage - Synopsys and ANSYS It has been multiple weeks now, since the news broke out and recent reports suggests that the consolidation has entered the final stages. It's another multi-billion deal and would result in Synopsys, the EDA powerhouse, strongly proliferating into engineering simulation offerings. Already both these companies showcased their synergy by successfully delivering new RFIC reference flow for Samsung technology mid of last year (2023). More details at https://lnkd.in/eN3QDQNp
Synopsys (SNPS) Reportedly in Advanced Talks to Buy ANSYS
finance.yahoo.com
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[News Update - Synopsys] Synopsys to Acquire Ansys, Creating a Leader in Silicon to Systems Design Solutions Synopsys is set to acquire Ansys in a deal valued at around $35 billion. This strategic move combines Synopsys' semiconductor design technology with Ansys' simulation and analysis capabilities, creating a leader in silicon to systems design solutions. The merger aims to address the increasing complexity driven by AI and software-defined systems, expanding Synopsys' market presence and expected to enhance financial performance. With Ansys shareholders receiving cash and Synopsys stock, the acquisition is projected to be accretive to non-GAAP EPS within the second year post-close. The joint efforts aim to provide innovative solutions and insights for technology R&D teams across diverse industries. More information here: https://lnkd.in/eFmJuhhV ------------ Unlock Your Digital Transformation at digisea.vn Phone: (+84) 364 313 766 #DigiSea #DigitalTransformation #RPA #LowCode #OCR
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This week's edition of The Economist is covering the story of our merger. To quote: "The megadeal shines a spotlight on an obscure but critical link in the semiconductor supply chain. Like many other of its links, this one, too, is highly concentrated. Yearly sales of chip-design software have grown by 12% since 2018, twice as fast as the chip industry as a whole, to around $15bn. Synopsys and its smaller American rival, Cadence, each capture around a third of this, reckons idc, a research firm. Siemens, a German engineering giant with 15% of the market, is a distant third." "The deal still needs the blessing of regulators. Mr Ghazi points out that there is not much overlap between what Synopsys and Ansys do, so their merger would not increase concentration in his firm’s core market…A bigger worry is China. Nearly 15% of Synopsys’s revenue comes from the country and growth there has outpaced that in any other region. Chinese chip firms buy nearly 90% of their design software from American companies, including Cadence and Synopsys. Security hawks in Washington increasingly want to keep American tech out of Chinese hands, lest it give China a boost in a bigger race: the geopolitical one for technological supremacy."
A $35bn mega-merger strengthens a quiet chip duopoly
economist.com
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The chip-design company Synopsys Inc. has agreed to buy software developer Ansys Inc. for about $34 billion. It's one of the largest deals announced worldwide in the past year and could help dealmakers break past a lackluster period of M&A. Ansys shares were down on the news -- a surprising move for a takeover target. Possible that traders are focused on the narrow premium, regulatory and antitrust concerns -- and the fact that the deal isn't expected to close until the first half of 2025. Our story here: https://lnkd.in/eizgywqw
Chip-Software Firm Synopsys Agrees to Buy Ansys for $35 Billion
bloomberg.com
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