Ajei Gopal, CEO, Ansys
Scott Mlyn | CNBC
Semiconductor design and software firm Synopsys on Tuesday announced it would acquire Ansys, a engineering and product design software firm, in a cash-and-stock deal valued at approximately $35 billion.
Synopsys will pay consideration of roughly $390 per share: $197 per-share in cash and roughly one-third of a Synopsys share for each Ansys share. The deal is expected to close in the first half of 2025, pending regulatory and shareholder approval.
Ansys shareholders will own 16.5% of Synopsys following the merger, Synopsys CEO Sassine Ghazi said during a conference call following the announcement. The deal will be partially funded by $16 billion of debt financing, Synopsys said in a release. The remaining $3 billion non-equity consideration will come from Synopsys' cash on hand.
For the quarter ending October 31, 2023, Synopsys reported cash and cash equivalents of $1.4 billion.
The deal will not immediately be accretive until at least a year after the deal closes, Synopsys CFO Shelagh Glaser said.
Synopsys shares were up slightly in pre-market trading, after a 12% slump since The Wall Street Journal reported in December that the two companies were in advanced talks. Ansys shares slipped 4% Tuesday morning but were up more than 14% in that same period since December.
"This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees," Ghazi said in a release.
Evercore and Cleary Gottlieb Steen & Hamilton served as advisors to Synopsys. Qatalyst Partners, Skadden and Goodwin Procter advised Ansys.
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