Jan 17, 2024 3 min read

By Brad Hundt

Staff writer

bhundt@observer-reporter.com

Ansys, the Southpointe-based software company, is being acquired by Synopsys, a California electronic design automation company, it was announced Tuesday.

If Ansys shareholders approve the $35 billion deal, it is expected to be completed in 2025. The merger will bring together Synopsys, a chip designer, with Ansys, which is known for the simulation software that is used in the automotive, aerospace and other industries.

Ansys has more than 5,000 employees in offices around the world. When reached Tuesday, a spokeswoman for the company declined to say how many employees were at the Southpointe headquarters and, as a result of the acquisition, if the company would continue operations from that location.

In a news release, Ajei Gopal, president and CEO of Ansys, said, “For more than 50 years, Ansys has enabled customers to design, develop and deliver cutting-edge products that are limited only by imagination. By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation. This transformative combination brings together each company’s highly complementary capabilities to meet the evolving needs of today’s engineers and give them unprecedented insight into the performance of their products.”

He added, “The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys’ traditional customers. I am proud of all that our employees do every day to make Ansys and our customers successful and look forward to the combined company achieving even greater heights in this next chapter.”

Under the deal, shareholders in Ansys will receive $197 in cash for each share they own, as well as 0.34 shares of Synopsys stock for each of their Ansys shares. When the deal is done, Ansys shareholders will own a little more than 16% of the company.

Ansys generated $2 billion in revenue in 2022.

Synopsys and Ansys have been working together on an assortment of endeavors since 2017 and, according to the news release, “share a culture built on integrity, execution excellence and empowering customers. Combining their highly complementary solutions is expected to provide customers with a broader, deeply integrated suite of software tools to solve their most difficult design challenges while also gaining valuable insights through model-based analysis of complex systems.”

Ansys was founded in 1970 by John A. Swanson, and was originally called Swanson Analysis Systems. Swanson has been a donor to Washington & Jefferson College, and W&J’s Swanson Science Center is named for him.

The Associated Press contributed to this story.