Synopsys Inc. has announced its agreement to acquire design-software company Ansys Inc. in a cash and stock deal worth an estimated $35 billion. This major development has led to the halt of stocks for both companies.
Deal Details
As per the terms of the agreement, Ansys shareholders will receive $197.00 in cash along with 0.3450 Synopsys shares for each Ansys share they hold. Taking into account the closing prices on Friday, this values Ansys shares at $367.57, representing a premium of 6.1%. Furthermore, it signifies a staggering 21.2% premium compared to the closing price on Dec. 21, before The Wall Street Journal first reported the possibility of the deal.
Powering Innovation
The CEO of Synopsys, Sassine Ghazi, emphasized the need for increased computing performance due to the growing trends of AI, silicon proliferation, and software-defined systems. Ghazi stated that by merging the two companies, they aim to provide a “holistic, powerful, and seamlessly integrated silicon to systems approach to innovation,” thereby optimizing research and development opportunities.
Expected Closure
The deal is projected to close within the first half of 2025, subject to regulatory approvals and customary closing conditions.
Company Performance
Over the past 12 months, Ansys shares have experienced an impressive rally of 36.4% up until Friday. Meanwhile, Synopsys’ stock has seen a substantial increase of 48.5%, with the S&P 500 climbing by 19.6%.
