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Synopsys' Response to UK CMA's Approval of Ansys Acquisition

On January 8, 2025, Synopsys, Inc., a prominent player in electronic design automation and silicon solutions, announced a positive development regarding its proposed acquisition of Ansys, Inc. The UK's Competition and Markets Authority (CMA) has provisionally accepted Synopsys' proposed remedies during the first phase of their review, steering clear of escalating the review to a second phase.

In a statement released, Synopsys expressed its delight in the CMA's decision. The company indicated that moving forward with this phase one acceptance is a significant milestone, which reflects the CMA's recognition of the potential benefits from the merger. The management emphasized its ongoing commitment to maintaining constructive and collaborative dialogue with the CMA throughout the remaining approval process.

Customers have continued to show overwhelming support for this acquisition, highlighting the operational synergies and innovations it is expected to bring to the industry. Synopsys and Ansys plan to combine their expertise to enhance system design solutions that align closely with the needs for advanced integration of Electronic Design Automation (EDA) and Simulation and Analysis (SA) software. By converging these technologies, they aim to address the growing customer demands across several sectors.

The anticipation surrounding this merger lies within the potential it holds to reshape the landscape of system design. With Ansys' robust simulation software alongside Synopsys' leading EDA solutions, the two companies foresee an increased ability to foster innovation and drive technological advancement, which is crucial as industries face rapidly evolving challenges.

Synopsys expects that this transaction will come to fruition in the first half of 2025, provided that all necessary regulatory approvals are secured in a timely manner. The collaborative efforts towards obtaining these approvals indicate a healthy partnership outlook, establishing a strong foundation for future integration plans.

About Synopsys

Founded in 1986, Synopsys has reliably provided advanced solutions in electronic design automation and semiconductor system verification. The company stands out for revolutionizing how innovation is propelled in the technology arena, delivering comprehensive solutions from EDA to silicon IP services. By continuously partnering with semiconductor and systems customers, Synopsys empowers R&D capabilities, paving the way for groundbreaking advancements expected to define the industry's future.

For more insights and details, visit Synopsys’ official website.

Investor Notes and Forward-Looking Statements

While the developments in this acquisition appear promising, it is essential to note that they are contingent on various factors, including regulatory approvals, future market conditions, and the companies’ abilities to effectively integrate their operations post-transaction. There remains a degree of uncertainty inherent in such mergers, which could potentially affect financial forecasts and operational strategies in unforeseen ways. Stakeholders are encouraged to monitor further updates as Synopsys navigates through this acquisition journey with Ansys.

In conclusion, the provisional acceptance by the UK CMA marks an imperative step for Synopsys and signals a potential realignment in the system design sector, allowing for a broadened scope of capabilities that could shape the future of technology integration and innovation.