EU approves $35B Synopsys and Ansys merger, subject to divestment conditions

Deal Overview - The European Commission has approved Synopsys' acquisition of Ansys, but requires the companies to divest certain software products as part of the remedies [1] - The $35 billion transaction is the largest in the technology sector since Broadcom's$69 billion acquisition of VMware [2] Regulatory Concerns - Regulators are concerned the merger would create a dominant chip design and simulation giant that could stifle competition [3] - The EC has mandated the companies sell overlapping business parts to an approved purchaser [3] Divestment Details - Synopsys will sell its Optical Solutions Group to Keysight, as well as optics and photonics software including Code V, LightTools, LucidShape, RSoft and ImSym [4] - Ansys will divest PowerArtist, a software for analyzing and optimizing electronic circuit power consumption [4] Regulatory Progress - The UK Competition and Markets Authority launched an antitrust investigation in August and has indicated willingness to accept a similar divestment offer [5]