Synopsys to buy Ansys for $35bn
Under the terms of the agreement, Ansys shareholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each share of Ansys stock, for a total acquisition value of approximately $35 billion based on the closing price of Synopsys common stock on 21 December 2023. The transaction combines Synopsys' leading semiconductor electronic design automation (EDA) with Ansys' broad simulation and analysis, portfolio to create a leader in silicon-to-system design solutions. ANd the transaction is expected to close in the first half of 2025.
Combining leading capabilities to meet customer needs: The complexity of today's smart systems requires integrated semiconductor design, simulation and analysis to ensure connected systems function properly in real-world environments. Combining Synopsys' EDA technology with Ansys' existing simulation and analysis capabilities provides customers with a comprehensive, robust and system-centric approach to innovation.All Ansys customers, including those outside the semiconductor industry, can benefit from a comprehensive portfolio of products and technologies to drive innovation.
Accelerating strategy and growth in attractive adjacent areas: Synopsys and Ansys have highly complementary businesses and significant expansion opportunities. The merger will enhance Synopsys' "Silicon to Systems" strategy, both in core EDA areas & attractive neighbouring growth areas like automotive, aerospace and industrial, where Ansys has a proven presence and successful go-to-market experience.
Complementary: since 2017, Synopsys and Ansys have established a successful and growing partnership and share a culture based on integrity, execution excellence and empowered customers. Combining their highly complementary solutions is expected to provide customers with a broader, deeply integrated suite of software tools to solve their most difficult design challenges while gaining valuable insights through model-based analysis of complex systems.
Intentional expansion of the total potential market: Synopsys' total potential market (TAM) is expected to grow 1.5x to approximately $28 billion. This consolidated TAM is expected to grow at a CAGR of approximately 11%, driven by the megatrend of accelerating demand for electronic and physical convergence across industries.
Strengthens Synopsys' Strong Financial Position and Outlook:The merger is expected to strengthen Synopsys' financial position. The combined company is expected to continue its industry-leading double-digit growth.
Realise cost and revenue synergies: The combined company is expected to realise approximately $400 million in operating cost synergies in the third year following the closing of the transaction, approximately $400 million in operating revenue synergies in the fourth year following the closing of the transaction, and in excess of $1 billion per year in operating cost synergies over the long term.
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