The European Commission approves Synopsys’ acquisition of Ansys, provided the parties comply with some conditions.
Synopsys may acquire Ansys from the European Commission. Synopsys makes solutions for electronic design automation (EDA), specifically software tools for microchip development. Ansys also builds advanced software solutions, mainly focused on engineering simulations. Synopsys has $35 billion left for Ansys but the EU did not want to approve the acquisition without an analysis.
Specifically, the committee feared an impact in the market for EDA tools and specialized software. The activities of the two companies are largely complementary, according to the committee, but the acquisition would nevertheless have depressed competition in the market for simulation software for the behavior of light at the micro- and macro-scale. Such tools are relevant to, for example, the production of computer screens on the one hand and digital cameras or solar panels on the other. There was also a risk for EDA tools focused on chip power consumption.
Less competition
The EU found that the shared market share of Synopsys and Ansys would be high, and there would be insufficient alternatives in the market. That could lead to higher prices and less choice.
To address this, Synopsys and Ansys proposed to sell the overlapping activities related to EDA for power consumption and light simulation to an outside party. In doing so, the two companies are addressing EU concerns. Under those conditions, the big acquisition can proceed.