Synopsys Proposes Divestitures to Secure EU Approval for $35 Billion Ansys Deal

Synopsys, a prominent chip design software company, has proposed additional divestitures in a bid to gain European Union regulatory approval for its $35 billion acquisition of Ansys, according to Reuters. The move underscores Synopsys’ efforts to address competition concerns raised by the European Commission, the EU’s competition watchdog.

As part of its strategy, Synopsys has already committed to selling its Optical Solutions Group to Keysight Technologies, pending the approval of the Ansys deal. In a recent development, the company has also offered to divest Ansys PowerArtist, a tool designed to analyze and reduce power consumption for energy-efficient designs. The divestiture includes PowerArtist’s associated research, development, distribution, licensing, and marketing operations.

Related: Synopsys Proposes EU Remedies for $35 Billion Ansys Deal

The European Commission is currently seeking input from competitors and customers on Synopsys’ latest proposal, with feedback due by December 16. The Commission’s decision on the transaction is expected by January 10, 2025.

A Synopsys spokesperson stated that the company remains optimistic about the deal, emphasizing that “customers remain overwhelmingly supportive of this pro-competitive deal,” and reaffirmed their expectation for the transaction to close in the first half of 2025.

Notably, Synopsys has refrained from offering behavioral remedies related to its business practices. Per Reuters, this suggests that the EU antitrust regulator does not perceive significant risks of interoperability issues or product bundling following feedback from industry stakeholders.

The acquisition of Ansys, whose software is integral to designing products ranging from aircraft to tennis rackets used by athletes such as Novak Djokovic, is one of the largest technology sector deals since Broadcom’s $69 billion purchase of VMware last year.

Source: Reuters