Ansys and Synopsys Forge New Paths with Keysight Technologies Transaction

A New Era in Semiconductor Design: Ansys Sells PowerArtist to Keysight Technologies

On January 6, 2025, Ansys (NASDAQ: ANSS) along with Synopsys (NASDAQ: SNPS) disclosed a pivotal agreement with Keysight Technologies, Inc. (NYSE: KEYS). This transaction involves the sale of Ansys' PowerArtist™ business to Keysight, which is a recognized leader in design and simulation software focused on semiconductors and electronics.

What is PowerArtist?

PowerArtist is a robust register-transfer-level (RTL) design-for-power platform that provides insightful early-stage power analysis and reduction for semiconductor designs. This advanced tool allows firms within the semiconductor industry to make informed decisions regarding power-related design earlier in the design process, beneficially impacting the overall efficiency and effectiveness of their projects.

Compared to classic gate-level methodologies, PowerArtist offers remarkably quick turnaround times for multimillion instance designs. Thus, it empowers designers to tackle power consumption issues head-on and innovate more sustainably.

Significance of the Sale

The transaction, which depends on customary closing conditions and regulatory reviews, highlights a strategic shift. Ansys and Synopsys concluded that selling PowerArtist was essential to facilitate regulatory approval for Synopsys' proposed acquisition of Ansys itself, which is predicted to finalize in the first half of 2025. This sale signifies a vital step in aligning interests for both companies' future endeavors and opportunities.

John Lee, Vice President and General Manager of the electronics semiconductor and optics division at Ansys, expressed pride in the role PowerArtist has played in advancing low power innovations within semiconductor design applications. He stated that the platform would continue to thrive as part of Keysight's portfolio, ensuring its independence as an RTL power product that is agnostic of specific vendor design flows.

Keysight Technologies, a prominent supplier to semiconductor and electronics companies globally, sees acquiring PowerArtist as a strategic move to boost its software offerings in high-performance system designs. Niels Faché, Keysight's Vice President and GM of Design Engineering Software, emphasized the acquisition would enhance digital systems solutions and welcomed the PowerArtist team to Keysight.

Transition and Future Outlook

The sale of PowerArtist is classified as immaterial in Ansys’ financial portfolio, and the detailed terms of the agreement are undisclosed at this stage. Both parties have committed to ensuring a smooth transition for the PowerArtist team, customers, and partners. In the interim, Ansys intends to support PowerArtist within its existing product lineup, maintaining the high-quality service that its customers have come to expect.

Closing Thoughts

This agreement not only signifies a strategic consolidation within the software solutions for the semiconductor industry but charts a promising path for enhanced power efficiency and performance. As Ansys continues to innovate and Synopsys prepares for its acquisition, the PowerArtist transfer to Keysight establishes a legacy of continued advancement in semiconductor design tools, which will play a crucial role in the future of sustainable electronics.

As we anticipate the closing of these transactions, the semiconductor industry and associated sectors look forward to the advancements and contributions that arise from this new collaboration, setting the stage for a future where innovative designs are powered by sophisticated simulation technologies.