Synopsys Inc (NASDAQ:SNPS) announced on Tuesday an agreement to acquire engineering and product design software company Ansys in a cash-and-stock transaction valued at approximately $35 billion, as Synopsys makes a push into the artificial intelligence (AI) and semiconductor-design "megatrends."
Ansys shareholders will receive $197 in cash and 0.3450 common shares of Synopsys for each Ansys share held.
"The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity," Synopsys CEO Sassine Ghazi said in a statement.
"Bringing together Synopsys' industry-leading EDA solutions with Ansys' world-class simulation and analysis capabilities will enable us to deliver a holistic, powerful and seamlessly integrated silicon to systems approach to innovation to help maximize the capabilities of technology R&D teams across a broad range of industries."
Ansys is involved in automotive, aerospace and defense, construction, energy, materials and chemical processing.
The company’s software is even used in tennis to design rackets for players such as Novak Djokovic, Reuters reported.
Synopsys held cash and equivalents of $1.4 billion as of October 31, 2023.
The acquisition is expected to close in the first half of 2025.
Shares of Synopsys rose 4% to $514.31 in early Tuesday trading, while Ansys shares fell 4% to $331.87.