Synopsys in Advanced Talks to Acquire Software Maker Ansys

(Bloomberg) -- Synopsys Inc. is in advanced talks to acquire engineering software provider Ansys Inc. for about $35 billion, people with knowledge of the matter said.

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Synopsys is discussing paying about $400 a share for Ansys, in a deal that could be announced as soon as next week, according to the people, who asked to not be identified because the details aren’t public. A final agreement hasn’t been reached and talks could still fall through or the terms could change, the people added.

A spokesperson for Synopsys declined to comment. A representative for Ansys didn’t immediately respond to a request for comment.

Shares in Ansys have risen 17% since Bloomberg News reported last month that the Canonsburg, Pennsylvania-based company was exploring a sale. Ansys has a market value of about $30 billion.

A takeover of Ansys would be one of the largest transactions globally of the past 12 months and provide an early boost for dealmakers in 2024 as they seek to move on from a lackluster period of mergers and acquisitions activity.

Ansys, founded in 1970, makes simulation software used by engineers to predict how products from rockets to airplanes will work in the real world. Engineers use its structural analysis software before a project to cut manufacturing costs, reduce risk and bring products to market faster, according to its website. Its software is used by companies in the aerospace, automotive and industrial industries.

Synopsys, with a market value of about $75 billion, provides design technologies for creating circuits and chips used in the electronics market.

Based in Sunnyvale, California, Synopsys is one of a few major companies that make software used to design semiconductors, competing primarily with Cadence Design Systems Inc. In August, the firm completed a purchase of PikeTec GmbH, a closely held German software company that focused on autonomous driving, in deal valued at $200 million.

Synopsys generated $5.84 billion in sales in the fiscal year ending Oct. 31 and analysts project a 13% revenue jump in fiscal year 2024.

The timing and value of the potential deal was reported earlier by the Wall Street Journal.

--With assistance from Dinesh Nair.

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