Semiconductor design and software firm Synopsys (NASDAQ:SNPS) on Tuesday announced it would acquire Ansys (NASDAQ:ANSS), 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.
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.
The deal will be partially funded by $16 billion of debt financing, Synopsys said in a release.
“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,” Synopsys CEO Sassine Ghazi said in a release.
Evercore and Cleary Gottlieb Steen & Hamilton served as advisors to Synopsys. Qatalyst Partners, Skadden and Goodwin Procter advised Ansys.
SNPS shares sank 19 cents to $27.04, while shares in ANSS tumbled $13.67, or 4%, to $332.81.
