Synopsys finalizes $35 bln deal to buy engineering software vendor Ansys-source
By Milana Vinn and Anirban Sen
NEW YORK, Jan 16 (Reuters) - Design software maker Synopsys has finalized terms to acquire engineering software company Ansys for about $35 billion in cash and stock, two people familiar with the matter said on Tuesday.
The transaction would be the biggest acquisition in the technology sector since chip maker Broadcom took over software maker VMware last November in a $69 billion deal. It could herald more big deals as a pick-up in economic sentiment and some failed attempts by antitrust regulators to thwart deals embolden chief executives to place large acquisition bets.
Synopsys will pay about $19 billion in cash and $16 billion in Synopsys stock for Ansys, one of the sources said. The deal contract will be in effect for as long as 24 months to give the companies time to get the deal cleared by antitrust regulators, the source added.
The deal values Ansys at slightly less than $400 per share and represents a roughly 30% premium to Ansys' closing share price on Dec. 21, the day before Reuters was first to report the two companies were in deal negotiations.
The transaction will be announced on Tuesday morning, the source said.
Synopsys and Ansys did not immediately respond to a request for comment. (Reporting by Milana Vinn and Anirban Sen in New York Editing by Greg Roumeliotis)
