Synopsys to acquire graphics software maker Ansys in $35B

Synopsys to acquire graphics software maker Ansys in $35 billion tech deal

Synopsys to acquire graphics software maker Ansys in $35B

Synopsys to acquire graphics software maker Ansys in $35 billion tech deal

On Tuesday, semiconductor design and software firm Synopsys revealed its intention to acquire Ansys, an engineering and product design software firm, in a significant cash-and-stock transaction valued at around $35 billion. This acquisition stands out as one of the most substantial tech deals in recent times.

As part of the deal, The company plans to offer approximately $390 per share to Ansys shareholders, consisting of $197 per share in cash and roughly one-third of a Synopsys share for each Ansys share. The completion of the acquisition is anticipated in the first half of 2025, subject to regulatory and shareholder approvals.

Despite a 12% decline in Synopsys shares since The Wall Street Journal reported advanced talks in December, the announcement led to a 3% increase in Synopsys shares on Tuesday morning. Conversely, Ansys shares experienced a 5% drop but had risen more than 14% since December.

Synopsys Merger Details: Post-Merger Ownership and Financing Details Unveiled by Ansys CEO.

After the merger, Ansys shareholders are expected to possess 16.5% of Synopsys, according to statements made by company CEO Sassine Ghazi during a post-announcement conference call. The acquisition will be partially financed through $16 billion in debt financing, with the remaining $3 billion non-equity consideration sourced from Synopsys’ existing cash, as of October 31, 2023, when it reported cash and cash equivalents of $1.4 billion.

Company CFO Shelagh Glaser noted that the deal may not immediately contribute to earnings until at least a year after its closure. Ghazi expressed optimism about the continued involvement of Ansys CEO Ajei Gopal through the combination, highlighting the logical progression of their successful seven-year partnership.

In a broader context, this acquisition adds to a series of noteworthy deals in recent months, including Microsoft’s acquisition of Activision Blizzard, Broadcom’s purchase of VMware, and Cisco’s announcement of its $28 billion acquisition of Splunk in September, marking the company’s largest-ever deal.

The advisory teams for this transaction included Evercore and Cleary Gottlieb Steen & Hamilton for Synopsys, while Qatalyst Partners, Skadden, and Goodwin Procter advised Ansys.

Jason Stone

Jason Stone

Jason Stone is a serial entrepreneur with multiple 7 figure business ventures across various verticals of web and marketing. He is widely known by over 7 million people around the world as @Millionaire_Mentor on Instagram. Jason utilizes his experience and passion as a motivator, mentor, teacher, and social media influencer to help others create success. Jason Stone is an accomplished Senior Executive, Consultant, and Thought Leader with more than 20 years of success across the engineering, e-commerce, social media, internet, marketing, advertising, technology, automotive, blockchain, franchising, and health and wellness industries. He is an early-stage startup tech investor/advisor to over a dozen companies. Leveraging extensive experience creating go-to-market strategies and viral marketing, he is a valuable advisor for an organization experiencing growth or launching new products. His broad areas of expertise include business development, mechanical engineering, global strategy, email marketing, digital marketing, automation, blockchain, organizational leadership, and growth hacking. t
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