SUNNYVALE, CA – Synopsys and Ansys have announced a definitive agreement under which Synopsys will acquire Ansys for $35 billion.

Under the terms of the agreement, Ansys shareholders will receive $197 in cash and 0.3450 shares of Synopsys common stock for each Ansys share. The deal is expected to close in the first half of 2025. EDA firms Cadence Design Systems and Siemens reportedly made bids for Ansys before Ansys agreed to the Synopsys sale, with Cadence kicking off the sales process after making an initial acquisition offer last fall, CNBC reported. 

Ansys shareholders will own 16.5% of Synopsys following the merger, Synopsys CEO Sassine Ghazi said during a conference call after the announcement. The deal will be partially funded by $16 billion of debt financing, with the remaining $3 billion nonequity consideration will coming from Synopsys’ cash, the company said in a release.

Combining Synopsys' pioneering semiconductor electronic design automation with Ansys' broad simulation and analysis portfolio will create a leader in silicon to systems design solutions, the companies said.

"The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity," Ghazi said. "Bringing together Synopsys' industry-leading EDA solutions with Ansys' world-class simulation and analysis capabilities will enable us to deliver a holistic, powerful and seamlessly integrated silicon to systems approach to innovation to help maximize the capabilities of technology R&D teams across a broad range of industries. 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."

"Since inception 37 years ago, Synopsys has been an innovation pioneer, central to world-changing semiconductor advances in computation, networking, and mobility, and now enabling the new era of 'pervasive intelligence'," said Aart de Geus, executive chair and founder of Synopsys. "Joining forces with Ansys, a company we know well from our long-standing partnership, is the latest example of how Synopsys remains at the forefront. Our board and management team carefully evaluated our top strategic options to lead and win in this fast-growing new wave of electronics and system design. The technology-broadening team-up with Ansys is an ideal, value-enhancing step for our company, our shareholders, and the innovative customers we serve."

"For more than 50 years, Ansys has enabled customers to design, develop and deliver cutting-edge products that are limited only by imagination. By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation," said Ajei Gopal, president and CEO of Ansys. "This transformative combination brings together each company's highly complementary capabilities to meet the evolving needs of today's engineers and give them unprecedented insight into the performance of their products. Ansys has a strong foundation, as demonstrated by preliminary annual contract value results for Q4 that are expected to exceed the high end of our guidance, and I am confident that building on our partnership with Synopsys will position us well to deliver even greater value for our customers, partners and shareholders. The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys' traditional customers. I am proud of all that our employees do every day to make Ansys and our customers successful and look forward to the combined company achieving even greater heights in this next chapter."