Ansys 2025 R2 amplifies human ingenuity with AI-driven tools and features that simplify simulation adoption, encourage collaboration, and boost productivity across teams. Physics-based AI for Intuitive Simulations Foster synergy, streamline workflows, and shorten time-to-market with new AI-driven tools and enhancements to Ansys simulation technology / Key Highlights PITTSBURGH, July 29, 2025 /PRNewswire/ -- Ansys, now part of Synopsys, (NASDAQ: SNPS) today announced 2025 R2, featuring new AI-powered capabil ...

There's plenty of reason to be optimistic about Synopsys' future; however, whether it could realistically make you a millionaire is a much different story. Electronic design automation (EDA) solutions company Synopsys (SNPS -1.55%) recently completed its long- awaited acquisition of engineering simulation software company Ansys. The deal was completed shortly after the company received the remaining approval it needed (from China) to make the acquisition. It's an exciting deal that promises to put the new S ...

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Core Insights - The automotive industry is rapidly transitioning towards electrification, intelligence, and autonomous driving, creating unprecedented opportunities for the Electronic Design Automation (EDA) industry [1] - Major EDA players like Synopsys, Siemens, and Cadence are competing fiercely in the automotive electronics sector through technological innovation and strategic acquisitions [1][25][38] - The complexity and safety requirements of automotive electronic systems necessitate a closer relationship between chip design and system-level development, leading to increased demand for simulation and verification [3][41] Group 1: Mergers and Acquisitions - Synopsys announced the completion of a $35 billion acquisition of Ansys, marking a significant milestone in the EDA industry's shift towards system-level design [8][18] - Siemens completed a $10.6 billion acquisition of Altair Engineering to enhance its system-level software capabilities in the automotive electronics field [25][26] - Cadence acquired BETA CAE Systems for $1.24 billion, expanding its presence in automotive and aerospace simulation [38][39] Group 2: Importance of Simulation - Simulation is increasingly critical in automotive electronics due to the rapid evolution of technologies like autonomous driving and battery management systems [3][6] - Compared to physical testing, simulation is more cost-effective, faster, and safer, allowing for early-stage verification and rapid iteration [4][5][6] - Simulation can cover a broader range of test cases and scenarios, which is essential for complex systems like autonomous vehicles and battery management systems [5][6] Group 3: Market Growth and Trends - The total addressable market (TAM) for Synopsys is expected to grow 1.5 times to approximately $31 billion post-acquisition of Ansys, driven by the increasing demand for electronic and physical integration [20] - The combined market for system-level simulation and EDA revenue is projected to equalize, particularly in aerospace, industrial, automotive, and server markets [24] - The automotive electronics sector is experiencing unprecedented development cycles, necessitating a shift towards system-level simulation and virtual testing [41]

Core Viewpoint - Synopsys has successfully completed its acquisition of Ansys for $35 billion, receiving approval from Chinese regulators, which clears the final hurdle for the transaction that was previously approved by U.S. and European regulators with specific conditions [1][8]. Group 1: Strategic Importance of the Acquisition - The merger is seen as a transformative milestone for Synopsys, enhancing its capabilities in chip design and system-level simulation, which is crucial for developing complex intelligent systems [1][3]. - The acquisition opens new growth opportunities in sectors such as aerospace, automotive, and industrial equipment, potentially expanding Synopsys's market and business portfolio [2][7]. Group 2: Technological Integration - The combined company will provide a unified platform for developing complex multi-domain products, integrating EDA tools with advanced simulation capabilities [4][5]. - The integration of Ansys's simulation data with Synopsys's AI-driven EDA tools will enable smarter, automated collaborative design processes, optimizing power, performance, thermal characteristics, and reliability [5][6]. Group 3: Market Position and Competition - The merger reduces the number of independent players in critical technology areas, which may intensify competition and regulatory scrutiny, particularly from U.S., Chinese, and EU authorities [8][9]. - The combined entity is expected to strengthen Synopsys's technological leadership and position within the semiconductor ecosystem, potentially leading to further mergers or ecosystem changes in response to increased competition [2][7]. Group 4: Regulatory Considerations - The acquisition has raised antitrust concerns, but it has been approved by regulatory bodies with conditions to ensure interoperability with competitors' solutions [8][9]. - The merged company may face increased regulatory pressure due to its influence on key systems and design workflows in sensitive sectors like aerospace and defense [9].

Core Insights - Synopsys, a leading semiconductor EDA company, has completed the acquisition of simulation EDA firm Ansys for $35 billion, announced on January 16, 2024 [1] - The acquisition aims to integrate leading companies in chip design, IP cores, and simulation and analysis fields to accelerate the development of AI-driven products [1] - The acquisition received conditional approval from China's State Administration for Market Regulation on July 14, 2025, marking the completion of all necessary approvals for the transaction [1] - Following the acquisition, former Ansys President and CEO Ajei Gopal and former Ansys board member Ravi Vijayaraghavan will join the Synopsys board, effective immediately [1]

Core Insights - Synopsys has completed the acquisition of Ansys, enhancing its capabilities in silicon design, IP, and simulation to foster innovation in AI-powered products [1][2][4] - The combined entity is now positioned to capture an expanded total addressable market (TAM) of $31 billion [1][7] - The integration aims to deliver the first set of combined capabilities in the first half of 2026, focusing on multiphysics across the full EDA stack [3][7] Company Overview - Synopsys is recognized as a leader in engineering solutions, providing industry-leading silicon design, IP, simulation, and analysis solutions [5] - The acquisition aligns with Synopsys' mission to empower innovators across various industries, including semiconductors, automotive, aerospace, and more [2][5] Leadership Changes - Ajei Gopal and Ravi Vijayaraghavan from Ansys will join Synopsys' board of directors, indicating a commitment to a smooth integration process [1][2] Financial Position - The acquisition is expected to strengthen Synopsys' financial position, with projected margin expansion and increased unlevered free cash flow generation, facilitating rapid deleveraging over two years [4]

Company Overview - Synopsys (SNPS) shares increased by 3.6% to $569.1 in the last trading session, with a notable trading volume, and have gained 14.6% over the past four weeks [1] - The growth is driven by strong momentum in AI and HPC, positively impacting Synopsys' product segments, including Synopsys.ai, VSO.ai, and ASO.ai, which are seeing increased adoption due to productivity improvements [1] Earnings Expectations - Synopsys is expected to report quarterly earnings of $3.84 per share, reflecting a year-over-year increase of 12%, with revenues projected at $1.77 billion, up 16% from the previous year [2] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Synopsys is part of the Zacks Computer - Software industry, which includes other companies like OptimizeRx Corp. (OPRX), that recently closed 2.3% higher at $12.97, but has seen a -7.9% return over the past month [4] - OptimizeRx's consensus EPS estimate has also remained unchanged at $0.03, representing a 50% increase compared to the previous year, and it holds a Zacks Rank of 1 (Strong Buy) [5]

Group 1 - Morgan Stanley reports that the State Administration for Market Regulation (SAMR) in China has conditionally approved Synopsys (SNPS.US) to acquire ANSYS (ANSS.US) for $35 billion, removing the last major regulatory hurdle for the deal [1][2] - The approval comes with several conditions, including the divestiture of Synopsys's optical and photonics simulation business and the separation of ANSYS's power analysis software business [1] - Both companies must maintain existing contracts with Chinese customers, including pricing and service levels, and cannot bundle products; EDA tools must support industry-standard formats and maintain interoperability agreements with Chinese customers [1][2] Group 2 - The deal had been under review due to US-China trade tensions and potential export controls on chip design software, making the approval a positive development for Synopsys [2] - Morgan Stanley views this approval as the final major obstacle before the deal's completion, which is expected to occur soon, with updates likely during the earnings call around August 20 [2] - Long-term, the merger is expected to strengthen Synopsys's position in the EDA market, and any clear signals regarding the approval could pave the way for a stock re-rating [2]

Core Insights - ANSYS, Inc. and Synopsys, Inc. are set to finalize their merger on or about July 17, 2025, after receiving regulatory approval in all jurisdictions except China, which has now been granted [1][3][10] - The merger, initially announced on January 16, 2024, is valued at $35 billion, with Ansys shareholders receiving $197 in cash and 0.3450 Synopsys shares per ANSS share [3][10] - The combined entity aims to create a comprehensive engineering platform that enhances AI-driven product innovation, addressing the complexities of modern smart, connected devices [4][5][10] Company Overview - ANSYS specializes in simulation and analysis solutions, serving industries such as aerospace, automotive, and healthcare [5] - Synopsys is recognized for its advancements in silicon design and intellectual property, contributing significantly to semiconductor and system design [5] Market Performance - Following the merger announcement, shares of ANSYS rose approximately 3%, with a year-over-year gain of 16.8%, outperforming the Zacks Computer – Software industry's growth of 15.7% [2]