The deal is expected to increase the combined firm’s total addressable market by 50pc to bring it to $28bn.
Silicon Valley chip design company Synopsys has agreed to buy software maker Ansys for a whopping $35bn, making it the biggest tech acquisition deal of 2024 so far and one of the biggest over the past year.
The two US-based companies have been working together for seven years, according to Synopsys president and CEO Sassine Ghazi, who said this deal is “the logical next step”.
“The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity,” Ghazi said in an announcement yesterday (16 January).
“Bringing together Synopsys’ industry-leading EDA [electronic design automation] 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 maximise the capabilities of technology R&D teams across a broad range of industries.”
The deal is expected to combine Synopsys expertise in semiconductor design with the simulation and analysis tech provided by Ansys and increase the combined company’s total addressable market by 50pc to bring it to $28bn.
Ajei Gopal, president and CEO of Ansys, said that by joining forces with Synopsys, the 50-year-old company based in Pennsylvania will aim to “drive new levels of customer innovation”.
“This transformative combination brings together each company’s highly complementary capabilities to meet the evolving needs of today’s engineers and give them unprecedented insight into the performance of their products,” Gopal said.
“The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys’ traditional customers.”
Last August, Synopsys expanded its partnership with Intel to bring new intellectual property and automation services to Intel’s Foundry Services, helping customers to speed up the design, execution and project schedules for their system-on-chips.
Headquartered in Sunnyvale, California, Synopsys is listed on both S&P 500 and Nasdaq 100.
“Joining forces with Ansys is the latest example of how Synopsys remains at the forefront,” added Synopsys founder and executive chair Aart de Geus. “The technology-broadening team-up with Ansys is an ideal, value-enhancing step for our company, our shareholders and the innovative customers we serve.”
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