Synopsys, the leading provider of electronic design automation software, has announced its agreement to acquire Ansys for a staggering $35 billion. This monumental deal marks the largest technology acquisition of 2024 thus far.
While Synopsys may not have garnered as much attention as its notable customers such as Nvidia, Advanced Micro Devices, and Intel in the realm of artificial intelligence stocks, its significance cannot be underestimated. Ansys, on the other hand, specializes in offering simulation software that enables engineers to accurately predict the performance of their products.
By combining Synopsys’ industry-leading EDA solutions with Ansys’ exceptional simulation and analysis capabilities, this acquisition aims to deliver a comprehensive and seamlessly integrated approach to innovation. This collaboration will empower technology R&D teams to maximize their potential in developing cutting-edge solutions.
Under the terms of the agreement, Ansys shareholders will receive $197 in cash along with 0.3450 shares of Synopsys for each share they hold. This equates to a significant 29% premium over Ansys’ stock price on December 21, prior to the deal’s announcement.
Following this news, Ansys’ stock experienced a 4.5% decline, settling at $331, while Synopsys saw a 0.4% increase in its stock price. Over the past year, Synopsys’ stock has soared by an impressive 48%.