The tech industry is abuzz with the news that Synopsys, a leading provider of electronic design automation (EDA) software, has received approval from the European Commission (EC) for its proposed acquisition of Ansys, a simulation software company. This approval, which comes after the companies agreed to divest certain business units to address competition concerns, brings the merger one step closer to completion.



The EC's approval in Phase 1 follows a series of regulatory milestones for the proposed merger. Earlier this week, the UK Competition and Markets Authority (CMA) provisionally accepted the remedies offered by Synopsys, keeping the transaction from moving on to a Phase 2 inquiry. This approval is a significant milestone in the acquisition process, as it paves the way for the expected closing of the merger in the first half of 2025.

In addition to the EC and CMA approvals, Synopsys has also made progress in other relevant jurisdictions. The U.S. HSR Act waiting period has expired, and Synopsys is working cooperatively with the FTC to conclude its investigation and review of the proposed remedies. China SAMR has officially accepted the filing, and its review is in process. These developments indicate that the acquisition is on track to close in the first half of 2025, subject to all necessary regulatory permissions.

The approval in Phase 1 by the EC and CMA has therefore positively impacted the timeline for the acquisition's closure, as it has removed potential obstacles and maintained the expected closing date in the first half of 2025.



The acquisition of Ansys by Synopsys is expected to increase the combined company's total addressable market (TAM) by 1.5 times, bringing it to approximately $28 billion. This growth is attributed to the combination of Synopsys' semiconductor electronic design automation (EDA) with Ansys' simulation and analysis tools, which will create a more comprehensive suite of offerings for customers in various industries.

Customers continue to express their overwhelming support for the transaction, as the combined company will be better positioned to address the rapidly increasing customer need for system design solutions that provide a deeper integration of EDA and Simulation and Analysis (S&A) software. This integration will enable Synopsys and Ansys to help drive innovation across industries, from electronics to automotive and aerospace.

In conclusion, the EC's approval of the proposed acquisition of Ansys by Synopsys in Phase 1 is a significant step forward in the merger process. With the expected closing in the first half of 2025, the combined company will be well-positioned to capitalize on the growing demand for integrated EDA and S&A software solutions, ultimately driving innovation and growth in various industries.