Synopsys Inc. confirmed Tuesday an agreement to buy design-software company Ansys Inc. in a cash-and-stock deal valued at $35 billion, as the companies look to ride the AI and semiconductor-design “megatrends.”
The announcement confirms a deal that was widely expected following reports in The Wall Street Journal, starting in mid-December.
Under the terms of the deal, shareholders of Ansys
ANSS,
will receive $197.00 in cash and 0.3450 Synopsys shares
SNPS,
for each Ansys share they own.
Based on Friday’s closing prices, that values Ansys shares at $367.57 each, a 6.1% premium, or a 21.2% premium to the closing price on Dec. 21, before the first WSJ report of a deal.
Synopsys Chief Executive Sassine Ghazi said that with the “megatrends of AI, silicon proliferation and software-defined systems” requiring more computing performance, merging the companies will provide “holistic, powerful and seamlessly integrated silicon to systems approach to innovation” to maximize research and development.
Synopsys expects to fund the $19 billion cash portion of the deal through a combination of cash on hand and debt financing. The deal is expected to close in the first half of 2025.
The deal is expected to generate “substantial and sustained” free cash flow, lead to $400 million in cost synergies by the third year after the deal closes, and about $400 million in revenue synergies by year four.
Ansys shares have rallied 36.4% over the past 12 months through Friday, while Synopsys’ stock has run up 48.5% and the S&P 500
SPX,
has climbed 19.6%.
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