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Synopsys Proposes EU Remedies for $35 Billion Ansys Deal

By  |  December 10, 2024

Chip design software giant Synopsys has proposed concessions to the European Union (EU) to address antitrust concerns surrounding its $35 billion acquisition of engineering software company Ansys. The remedies were outlined in a filing with the European Commission, per Reuters, as the regulatory body continues its assessment of the landmark transaction.

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    Announced in January, the deal represents the largest acquisition in the technology sector since Broadcom’s $69 billion purchase of VMware in late 2023. While details of the proposed remedies have not been disclosed, the EU Commission has set a January 10 deadline to deliver its decision on whether to approve the acquisition.

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    Read more: UK’s Competition Watchdog Scrutinizes Synopsys’ $35 Billion Acquisition of Ansys

    The Commission may consult with competitors and customers regarding the proposed measures before determining if the concessions adequately address concerns. Should the preliminary review reveal unresolved issues, the regulator could launch an in-depth four-month investigation.

    As part of its efforts to facilitate the deal, Synopsys announced in September that it would divest its Optical Solutions Group, a producer of optical design tools, to Keysight Technologies. This sale remains contingent upon the completion of the Ansys acquisition.

    Last month, the Commission sought input from industry players, focusing on the implications of the merger for the electronic design automation (EDA) sector. According to Reuters, the review is particularly concerned with the interoperability of chip design tools with rival products and whether EDA vendors engage in bundling practices that could limit competition.

    Source: Reuters