Synopsys(SNPS) ZACKS·2025-01-07 15:16Transaction Details - ANSYS and Synopsys have agreed to sell Ansys' PowerArtist business to Keysight Technologies, contingent upon regulatory approvals and the completion of Synopsys' acquisition of Ansys, expected in the first half of 2025 [1] - PowerArtist, a register-transfer-level (RTL) design-for-power platform, is used by semiconductor companies for early-stage power analysis, and Keysight aims to strengthen its high-performance system design portfolio through this acquisition [2] - The sale is not financially significant to Ansys, and terms remain undisclosed, with Ansys continuing to offer PowerArtist until the deal closes to ensure uninterrupted customer support [2] ANSS-SNPS Deal Recap - Ansys is a leader in the high-end design simulation software market, enabling virtual prototyping to reduce costs for major manufacturing companies, with its comprehensive product portfolio and cross-domain capabilities expected to drive customer growth [3] - Synopsys announced the acquisition of Ansys in January 2024 for $35 billion, aiming to create a giant in the electronic design automation (EDA) software space, combining Synopsys' semiconductor EDA with Ansys' simulation tools to address the growing need for improved computing performance and efficiency [4] - Approximately 98.7% of Ansys shareholders voted in favor of the acquisition, representing 83.8% of the total outstanding shares, and the company received unconditional clearance from the Israeli Competition Authority in October 2024 [5] - Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook, expecting 2024 annual contract value (ACV) to grow in double-digits [5] Stock Performance - Ansys currently carries a Zacks Rank 3 (Hold), with its shares jumping 5.6% in the past three months compared to the industry's growth of 3.5% [6] Alternative Stock Consideration - BlackBerry Limited (BB) is a better-ranked stock in the broader technology space, carrying a Zacks Rank 1 (Strong Buy), and provides intelligent security software and services using machine learning and AI for cybersecurity, safety, and data privacy [9][10] - BlackBerry has consistently beaten the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 131.25%, and delivered a 200% earnings surprise in the last reported quarter, with its shares surging 74.4% in the past three months [11]