"The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity,” said Sassine Ghazi, President and CEO of Synopsys. “Bringing together Synopsys' EDA solutions with Ansys' 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.”
According to Ghazi, "This is the logical next step for our successful, seven-year partnership with Ansys.”
Commenting on the announcement Aart de Geus, Executive Chair and Founder of Synopsys said that the technology-broadening team-up with Ansys was, “An ideal, value-enhancing step for our company, our shareholders, and the innovative customers we serve."
Ajei Gopal, President and CEO of Ansys said the deal would bring together highly complementary capabilities to meet the evolving needs of today's engineers.
“The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys' traditional customers,” said Gopal.
With the complexity of today's intelligent systems, the integration of semiconductor design and simulation and analysis to ensure interconnected systems function properly in real-world settings, is becoming increasingly important.
Combining Synopsys' EDA technology with Ansys' established simulation and analysis capabilities makes it possible to provide customers with a comprehensive and system-focused approach to innovation. All Ansys customers, including those outside of the semiconductor industry, will benefit from access to a comprehensive portfolio of products and technologies that will drive innovation.
Synopsys and Ansys have highly complementary businesses and significant expansion opportunities. The combination is seen as enhancing Synopsys' Silicon to Systems strategy both across the core EDA segment and in highly attractive adjacent growth areas such as Automotive, Aerospace and Industrial, among others, where Ansys has an established presence and successful go-to-market experience.
Synopsys' total addressable market (TAM) is expected to increase by 1.5x to approximately $28 billion. This combined TAM is expected to grow at roughly an 11% CAGR4, driven by megatrends accelerating the need for the fusion of electronics and physics across industries.
Synopsys intends to fund the $19 billion6 of cash consideration through a combination of its cash on hand and debt financing. Synopsys has obtained $16 billion of fully committed debt financing.
The transaction is anticipated to close in the first half of 2025.
