The UK competition watchdog announced on Monday (12 August) that it is investigating chip design software maker Synopsys’ $35bn acquisition of ANSYS and whether it would negatively affect competition in Britain.
Synopsys announced its intention to acquire simulation software maker Ansys in January for a $35bn cash-and-stock deal.
The UK Competition and Markets Authority will now decide whether to launch a formal investigation of the deal.
Ansys is known for its simulation software, which is used by professionals across various sectors including aerospace, defence, automotive and energy to conduct product analysis.
Synopsys stated that integrating its semiconductor electronic design automation expertise with Ansys’ simulation and analysis portfolio will establish the company as a key player in silicon-to-systems design solutions.
“For more than 50 years, Ansys has enabled customers to design, develop and deliver cutting-edge products that are limited only by imagination,” Ansys president and CEO Ajei Gopal said. “By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation.”
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By GlobalDataThe acquisition has raised concerns among regulators as it could create competition issues in the crowded enterprise software sector.
Ansys previously said it expects the deal to close in the first half of 2025.
In May, Reuters reported that a private equity consortium led by Clearlake Capital and Francisco Partners was in advanced talks to acquire chip designer Synopsys‘ software integrity (SIG) unit for more than $2bn.
Clearlake and Francisco Partners managed to beat other equity firms attempting to buy the business, according to the sources.