Synopsys Responds to U.K. Competition and Markets Authority's Phase 1 Announcement Regarding Ansys Acquisition
Synopsys has responded to the UK Competition and Markets Authority's (CMA) Phase 1 findings regarding its proposed acquisition of Ansys. The company views this as an expected step in the regulatory review process and has already taken steps to address CMA's concerns, including the planned sale of its Optical Solutions business to Keysight. The company reports strong customer support for the transaction, which aims to integrate EDA and Simulation and Analysis software solutions. Synopsys maintains confidence in a positive resolution and expects the deal to close in the first half of 2025.
Synopsys ha risposto alle risultanze della Fase 1 dell'Autorità per la Concorrenza e i Mercati del Regno Unito (CMA) riguardo alla sua proposta di acquisizione di Ansys. L'azienda considera questo come un passo previsto nel processo di revisione normativa e ha già intrapreso azioni per affrontare le preoccupazioni della CMA, incluso la vendita programmata della sua divisione Optical Solutions a Keysight. L'azienda riporta un forte sostegno da parte dei clienti per la transazione, che mira a integrare soluzioni software di EDA e Simulazione e Analisi. Synopsys mantiene fiducia in una risoluzione positiva e si aspetta di finalizzare l'accordo nella prima metà del 2025.
Synopsys ha respondido a los hallazgos de la Fase 1 de la Autoridad de Competencia y Mercados del Reino Unido (CMA) respecto a su propuesta de adquisición de Ansys. La empresa ve esto como un paso esperado en el proceso de revisión regulatoria y ya ha tomado medidas para abordar las preocupaciones de la CMA, incluida la venta planificada de su negocio de Optical Solutions a Keysight. La empresa informa un fuerte apoyo de los clientes para la transacción, que tiene como objetivo integrar soluciones de software de EDA y Simulación y Análisis. Synopsys mantiene confianza en una resolución positiva y espera que el acuerdo se cierre en la primera mitad de 2025.
Synopsys는 영국 경쟁 및 시장청(CMA)의 1단계 조사 결과에 대해 Ansys의 인수 제안에 응답했습니다. 회사는 이를 규제 검토 과정에서 예상된 단계로 간주하고 있으며, CMA의 우려 사항을 해결하기 위해 이미 조치를 취했습니다. 여기에는 Optical Solutions 사업을 Keysight에 판매하기 위한 계획이 포함됩니다. 회사는 EDA와 시뮬레이션 및 분석 소프트웨어 솔루션을 통합하기 위해 고객의 강력한 지지를 받고 있다고 보고하고 있습니다. Synopsys는 긍정적인 해결책에 대한 신뢰를 유지하며, 거래가 2025년 상반기에 마감될 것으로 예상하고 있습니다.
Synopsys a répondu aux conclusions de la Phase 1 de l'Autorité de la concurrence et des marchés du Royaume-Uni (CMA) concernant sa proposition d'acquisition d'Ansys. L'entreprise voit cela comme une étape attendue dans le processus d'examen réglementaire et a déjà pris des mesures pour répondre aux préoccupations de la CMA, y compris la vente prévue de sa division Optical Solutions à Keysight. L'entreprise rapporte un fort soutien de la part des clients pour la transaction, qui vise à intégrer des solutions logicielles EDA et de simulation et d'analyse. Synopsys reste confiant quant à une résolution positive et s'attend à ce que l'accord soit finalisé dans la première moitié de 2025.
Synopsys hat auf die Ergebnisse der Phase 1 der britischen Wettbewerbs- und Marktbehörde (CMA) bezüglich seines Vorschlags zur Übernahme von Ansys reagiert. Das Unternehmen sieht dies als einen erwarteten Schritt im regulatorischen Prüfungsprozess an und hat bereits Maßnahmen ergriffen, um die Bedenken der CMA auszuräumen, einschließlich des geplanten Verkaufs seiner Optical Solutions-Sparte an Keysight. Das Unternehmen berichtet von einer starken Kundenunterstützung für die Transaktion, die darauf abzielt, EDA- und Simulations- und Analyse-Softwarelösungen zu integrieren. Synopsys bleibt zuversichtlich in Bezug auf eine positive Lösung und erwartet, dass der Deal in der ersten Hälfte von 2025 abgeschlossen wird.
- Strong customer support reported for the Ansys acquisition
- Proactive steps taken to address regulatory concerns, including sale of Optical Solutions business
- Transaction remains on track for first half 2025 closing
- Regulatory scrutiny from UK CMA requiring remedial actions
- Need to divest Optical Solutions business to satisfy regulatory requirements
Insights
The CMA's Phase 1 findings represent a standard procedural milestone in this
The planned remedies and collaborative approach with regulators suggest a well-structured deal strategy. Historical precedents in similar tech mergers indicate that such early-stage divestitures often successfully address competition concerns. The maintained H1 2025 closing timeline remains realistic given the current regulatory progression and proposed remedial actions.
The merger's focus on EDA and S&A software integration addresses a critical market need, potentially creating significant operational synergies. Customer support for the transaction strengthens the likelihood of regulatory approval, as end-user benefits are a key consideration in competition reviews.
This merger represents a transformative shift in the semiconductor design tool landscape. The integration of Synopsys' EDA leadership with Ansys' simulation expertise could accelerate chip design cycles and improve first-pass silicon success rates - critical factors as semiconductor complexity increases with advanced nodes.
The strategic value proposition extends beyond immediate market consolidation. By combining EDA and simulation capabilities, the merged entity could potentially reduce design iterations, lower development costs and accelerate time-to-market for semiconductor companies. For context, even a
The positive customer reception suggests strong commercial rationale, particularly as the industry faces increasing pressure to optimize power, performance and area (PPA) in chip design. This merger positions the combined company to better address these challenges through integrated solutions.
The CMA's Phase 1 announcement is an expected step in the
Customers continue to express their overwhelming support for the transaction. Together, Synopsys and Ansys can help drive innovation across industries by addressing the rapidly increasing customer need for system design solutions that provide a deeper integration of EDA and Simulation and Analysis (S&A) software. We remain confident in a positive resolution of the ongoing regulatory review process, and we continue to expect the transaction to close in the first half of 2025.
About Synopsys
Catalyzing the era of pervasive intelligence, Synopsys, Inc. (Nasdaq: SNPS) delivers trusted and comprehensive silicon to systems design solutions, from electronic design automation to silicon IP and system verification and validation. We partner closely with semiconductor and systems customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.
INVESTOR CONTACT:
Trey
Synopsys, Inc.
650-584-4289
Synopsys-ir@synopsys.com
EDITORIAL CONTACT:
Cara Walker
Synopsys, Inc.
650-584-5000
corp-pr@synopsys.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Synopsys and Ansys, including, but not limited to, statements regarding the anticipated timing of the closing thereof and the pending regulatory approval of the proposed transaction. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions or the negatives of these words or other comparable terminology to convey uncertainty of future events or outcomes. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties.
Many risks, uncertainties and other factors could cause actual future events to differ materially from the forward-looking statements in this communication, including, but not limited to: (i) the completion of the proposed transaction on anticipated terms and timing, anticipated tax treatment and unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, pricing trends, future prospects, credit ratings, business and management strategies which may adversely affect each of Synopsys' and Ansys' business, financial condition, operating results and the price of their common stock, (ii) the failure to satisfy the conditions to the consummation of the proposed transaction, including the adoption of the merger agreement by the stockholders of Ansys and the receipt of certain governmental and regulatory approvals on the terms expected, in a timely manner, or at all, (iii) the risk that such regulatory approvals may result in the imposition of conditions that could adversely affect, following completion of the proposed transaction (if completed), the combined company or the expected benefits of the proposed transaction (including as noted in any forward-looking financial information), (iv) uncertainties as to access to available financing (including any future refinancing of Ansys' or the combined company's debt) to consummate the proposed transaction upon acceptable terms and on a timely basis or at all, (v) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement, (vi) the effect of the announcement or pendency of the proposed transaction on Ansys' or Synopsys' business relationships, competition, business, financial condition, and operating results, (vii) risks that the proposed transaction disrupts current plans and operations of Ansys or Synopsys and the ability of Ansys or Synopsys to retain and hire key personnel, (viii) risks related to diverting either management team's attention from ongoing business operations of Ansys or Synopsys, (ix) the outcome of any legal proceedings related to the merger agreement or the proposed transaction, (x) the ability of Synopsys to successfully integrate Ansys' operations and product lines, (xi) the ability of Synopsys to implement its plans, forecasts, expected financial performance and other expectations with respect to Ansys' business or the combined business after the completion of the proposed transaction and realize the benefits expected from the proposed transaction (if completed) as well as manage the scope and size of the combined company, (xii) the ability of Synopsys to manage additional debt and debt covenants as well as successfully de-lever following the proposed transaction and the outcome of any strategic review and any resulting proposed transactions, (xiii) risks associated with third party contracts containing consent and/or other provisions that may be triggered by the proposed transaction, (xiv) uncertainty in the macroeconomic and geopolitical environment and its potential impact on the semiconductor and electronics industries, (xv) uncertainty in the growth of the semiconductor, electronics and artificial intelligence industries, (xvi) the highly competitive industries Synopsys and Ansys operate in, (xvii) actions by the
You should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of Synopsys and Ansys described in the "Risk Factors" section of their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed by either of them from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond Synopsys' and Ansys' control, and are not guarantees of future results. Readers are cautioned not to put undue reliance on forward-looking statements, and Synopsys and Ansys assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. Neither Synopsys nor Ansys gives any assurance that either Synopsys or Ansys will achieve its expectations.
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SOURCE Synopsys, Inc.
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