Chip design software maker Synopsys is to buy Ansys for about USD 35 billion. The latter is a maker of software that is used in the design of a wide range of products, from aircraft to tennis rackets of players such as Novak Djokovic. The merger will create a world-leading design solutions firm.
Largest acquisition in technology
The deal is the biggest acquisition in the technology sector since last November, when chipmaker Broadcom took over software maker VMware for $69 billion, Reuters reported. The deal still needs to be approved by shareholders as well as antitrust authorities. If all goes well, it could be completed in the first half of next year.
Under the deal, Ansys shareholders will receive USD 197 per share of their stock and 0.345 shares of Synopsys. That values one Ansys share at $390.19, a premium of about 29 percent compared with the price on Dec. 21, the day before Reuters first reported on the talks between the companies. Ansys shareholders are expected to hold a 16.5 percent stake in the merged group once the deal is completed.
Software design solutions
Synopsys caters to major chip manufacturers such as Intel, Advanced Micro Devices (AMD), and Nvidia. It creates software that is used for chip design in several industries. Ansys specializes in simulation software that engineers use for design in several industries, including aerospace and defense, automotive, energy, industrial equipment, consumer goods, healthcare, and construction.
Both companies have seen their share prices rise significantly over the past 12 months as the rise of artificial intelligence (AI) has taken off. The businesses also allied in 2017 to help customers use their technology more efficiently.
Source Czech Press Office
