UK competition watchdog clears US$35b Synopsys-Ansys deal
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The news: The UK’s Competition and Markets Authority (CMA) said that it will not refer chip design software maker Synopsys’ proposed USD35 billion ($55.75 billion) purchase of Ansys to an additional Phase-2 probe.
The numbers: Synopsys first announced its cash-and-stock deal for Ansys in January 2024, with Ansys shareholders receiving USD197 in cash and 0.3450 shares of Synopsys common stock for each Ansys share, representing an enterprise value of approximately USD35 billion (based on the closing price of Synopsys common stock on December 21 2023).
The context: In an update published by the CMA on Wednesday, the regulator said that it accepted concessions made by both companies, and that the full text of its decision will be released shortly.
In December 2024, the CMA said that the deal raised competition concerns in the supply of semiconductor chip design and light-simulation products in the UK, arguing that it could reduce innovation and lead to higher prices. The CMA conditionally approved the deal in January this year, following the companies’ submission of remedies.
In its acquisition announcement, Synopsys said that the deal would bring together Synopsys' semiconductor electronic design automation with Ansys' broad simulation and analysis portfolio to extend its reach in simulation software for microchips, cars and aircraft.
The European Commission conditionally approved Synopsys’ acquisition of Ansys in January, after the companies offered to divest parts of their business to ease fears it could hinder competition.
The source: CMA update
