Synopsys Completes $35 Billion Ansys Acquisition After Overcoming Regulatory Hurdles

Synopsys CEO Sassine Ghazi has successfully navigated the complexities of a $35 billion acquisition of Ansys, which is set to close today. This deal, one of the most significant in recent times, has garnered attention due to the regulatory hurdles it had to overcome in both the U.S. and China. Ghazi's approach involved extensive diplomacy and a clear message that Synopsys is a global company with opportunities across all regions.

Ghazi highlighted the importance of his personal involvement in the negotiations, stating that he made multiple trips to China to explain Synopsys' position and understand the concerns of Chinese regulators. He also emphasized the need for Synopsys to have access to both the U.S. and Chinese markets to continue leading in innovation. The toughest part of the process, he said, was negotiating access to technology in the event of geopolitical tensions between the two countries. Despite these challenges, Ghazi received overwhelming support from customers and recognized that Chinese regulators understood the importance of the deal for China's manufacturing sector.

The Federal Trade Commission had granted conditional approval in May, but the real test was convincing Chinese regulators. Ghazi's consistent message and personal engagement played a crucial role in winning their support. He also noted that the timing of the deal was uncertain at times, especially when there was a complete blackout and restriction on selling to China in late May. However, he never doubted that the deal would eventually be completed.

Ghazi's advice for others trying to navigate similar deals is to maintain a consistent message and represent the global nature of the company. He believes that both the U.S. and China have unique strengths that Synopsys can leverage to continue leading in innovation. The successful closure of this deal today marks a significant milestone for Synopsys and sets a precedent for future cross-border acquisitions in the tech industry.