Synopsys, Inc. SNPS is reportedly in discussions about acquiring ANSYS, Inc. ANSS, a move that could result in the creation of a significant design-software entity and represent one of the early major acquisition deals in the new year.
Ansys, valued at almost $30 billion, may see an acquisition deal materialize in early 2024, The Wall Street Journal reported, citing people familiar with the matter.
While the discussions are ongoing, there's a possibility they might not reach fruition, and alternative bidders could enter the scene, the report read.
Ansys, headquartered in Canonsburg, Pa., specializes in software designed to forecast real-world product performance, with applications across industries like aerospace, healthcare and automotive. Notably, the company achieved a revenue of approximately $2.1 billion in the year 2022.
Synopsys, situated in Sunnyvale, Calif., boasts a valuation of around $85 billion.
The company is a key player in providing software for engineers involved in the design and testing of silicon chips, crucial components in various technologies ranging from smartphones to self-driving cars and other applications of artificial intelligence.
Synopsys' customers include NVIDIA Corporation NVDA, Advanced Micro Devices, Inc. AMD and Intel Corporation INTC.
Ansys and Synopsys have a history of collaboration, having previously joined forces in 2017. At that time, they unveiled a strategic partnership aimed at integrating Ansys' technologies with select offerings from Synopsys. The collaboration sought to enhance the synergy between the products, benefiting mutual customers by optimizing their use.
If the acquisition proceeds, it will stand out as one of the most significant transactions in recent months.
This holds particularly true in the technology sector, which has experienced a slowdown in activity attributed to factors such as elevated interest rates and heightened scrutiny from antitrust enforcers.
Price Action: SNPS shares closed lower by 6.34% to $524.46 on Friday. Shares rose 0.67% to $528 after hours. ANSS shares closed higher by 18.08% to $357.98. Shares rose 2.35% to $366.39 after hours.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
