The European Commission (EC) has approved Synopsys’ $35bn (€34.3bn) acquisition of Ansys, a simulation software company, under certain conditions to maintain competition.
The deal, announced in January 2024, involves Synopsys, a chip design software maker, acquiring Ansys, but requires divestitures to address competition concerns in specific software markets.
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Ansys provides simulation solutions for sectors such as aerospace, defence, automotive, and energy.
Its products compete with Autodesk’s Fusion 360, AutoCAD, and Dassault Systemes’ Solidworks.
Synopsys aims to enhance its semiconductor electronic design automation (EDA) expertise by integrating Ansys’ simulation portfolio.
The acquisition is expected to bolster Synopsys’ core EDA segment and expand its reach in high-growth markets, including automotive, aerospace, and industrial sectors.
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By GlobalDataIn a statement, the EC said its investigation revealed that the merger, as initially proposed, would reduce competition in global markets for optics software, photonics software, and register-transfer-level power consumption analysis software.
These are crucial areas in the chip design process, and the merger would have impacted competition adversely
To address these concerns, Synopsys and Ansys have agreed to divest overlapping activities in the affected markets.
Synopsys will sell its optics and photonics software, including Code V, LightTools, LucidShape, RSoft, and ImSym.
Ansys will divest its PowerArtist software to Keysight Technologies.
“The commitments fully address the competition concerns by ensuring that there will be sufficient competition and choice in the global markets for the supply of optics, photonics and register-transfer-level power consumption analysis software,” the EC said.
The commission added that it will approve a suitable purchaser for the divested businesses in a separate procedure and Synopsys can only proceed with the acquisition of Ansys after this approval.
In December 2024, the UK’s Competition and Markets Authority (CMA) expressed concerns that the merger might harm competition in the UK. To address this, Synopsys and Ansys proposed divestments.
The CMA has until 5 March 2025, extendable to 6 May 2025, to decide on their acceptance.
