Synopsys Offers Asset Divestments to Secure EU Approval for $35 Billion Ansys Acquisition
In a bid to gain European Union approval for its $35 billion acquisition of Ansys, chip design software giant Synopsys has proposed divesting two of its assets, according to insiders familiar with the matter. The European Commission, the EU’s competition watchdog, is currently consulting with competitors and customers on Synopsys' proposals, with feedback due by December 16.
In a bid to gain European Union approval for its $35 billion acquisition of Ansys, chip design software giant Synopsys has proposed divesting two of its assets, according to insiders familiar with the matter. The European Commission, the EU’s competition watchdog, is currently consulting with competitors and customers on Synopsys' proposals, with feedback due by December 16.
Proposed Divestitures
To address regulatory concerns, Synopsys has offered the following divestments:
- Optical Solutions Group: This optical design tool manufacturer will be sold to Keysight Technologies, a design and simulation company.
- PowerArtist: This Ansys tool, specializing in power analysis and reduction for energy-efficient designs, including all associated R&D, licensing, and marketing operations, will also be divested.
Synopsys' Commitment to Regulatory Compliance
Synopsys reaffirmed its commitment to meeting regulatory requirements, stating:
“Customers remain highly supportive of this pro-competitive deal, and we continue to expect the transaction to close in the first half of 2025.”
Regulatory Context
Sources indicate that Synopsys has not been required to offer behavioral remedies related to its business practices. This suggests that the European Commission has not raised concerns about interoperability or product bundling following feedback from industry stakeholders in November.
The European Commission is set to decide on the transaction by January 10, 2025, marking one of the largest tech acquisitions since Broadcom’s $69 billion purchase of VMware last year.
Ansys: A Broad Industry Footprint
Ansys’ software plays a crucial role in the design and manufacturing of a wide range of products, from aerospace components to sports equipment like tennis rackets. Synopsys’ acquisition aims to strengthen its position in the highly competitive chip design and simulation market.
Outlook
With these proposed asset divestitures, Synopsys demonstrates its willingness to address potential antitrust concerns and maintain fair competition in the market. If approved, this acquisition will reshape the chip design software landscape and further solidify Synopsys' market leadership.
