Synopsys to acquire Ansys in $35 billion graphics software deal

Ajei Gopal, CEO, Ansys

Scott Mlyn | CNBC

Semiconductor design and software firm Synopsys on Tuesday announced it would acquire Ansys, a engineering and product design software firm, in a cash-and-stock deal valued at approximately $35 billion.

Synopsys will pay consideration of roughly $390 per share: $197 per-share in cash and roughly one-third of a Synopsys share for each Ansys share. The deal is expected to close in the first half of 2025, pending regulatory and shareholder approval.

Ansys shareholders will own 16.5% of Synopsys following the merger, Synopsys CEO Sassine Ghazi said during a conference call following the announcement. The deal will be partially funded by $16 billion of debt financing, Synopsys said in a release. The remaining $3 billion non-equity consideration will come from Synopsys’ cash on hand.

For the quarter ending October 31, 2023, Synopsys reported cash and cash equivalents of $1.4 billion.

The deal will not immediately be accretive until at least a year after the deal closes, Synopsys CFO Shelagh Glaser said.

Synopsys shares were up slightly in pre-market trading, after a 12% slump since The Wall Street Journal reported in December that the two companies were in advanced talks. Ansys shares slipped 4% Tuesday morning but were up more than 14% in that same period since December.

“This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees,” Ghazi said in a release.

Evercore and Cleary Gottlieb Steen & Hamilton served as advisors to Synopsys. Qatalyst Partners, Skadden and Goodwin Procter advised Ansys.

WATCH: Sec. Raimondo on China and Chips

Sec. Gina Raimondo: We can't have China's subsidization distort entire chips market

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Swift Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – swifttelecast.com. The content will be deleted within 24 hours.

Leave a Comment