Is the $35 billion deal going to change the EDA oligopoly? Is the need for better electronics-physics integration a game changer? Is EDA as a standalone industry gradually disappearing? Will Cadence look for merger opportunities?
The rumors have been confirmed: after a seven-year partnership, on January 16th Synopsys and Ansys announced that they have entered into a definitive agreement under which Synopsys will acquire Ansys for an enterprise value of approximately $35 billion. The transaction is anticipated to close in the first half of 2025. Summing up Synopsys’ 2023 revenue (approximately $6 billion) and Ansys’ 2023 revenue guidance (approximately $2 billion), the combined entity is expected to achieve a $8 billion annual income. According to the two companies, this merger is motivated by a compelling rationale: first of all, the new customer demands stemming from the complexity of today’s intelligent systems (including the chiplet trend), which require the integration of semiconductor design and simulation and analysis, in a “silicon to systems” approach that fuses electronics and physics; besides that, new growth opportunities in areas such as automotive, aerospace and industrial, where Ansys has an established presence; and the complementarity of the two companies’ respective solutions. A key role in the integration of the two organizations will be played by Rick Mahoney, currently Chief Revenue Officer in the Go-to-Market Group at Synopsys and previously Senior Vice President of Worldwide Sales, Customer Excellence, and Marketing at Ansys.
Credit: Synopsys
