(MENAFN- IANS) San Francisco, Jan 16 (IANS) Chip design and software company Synopsys on Tuesday announced to acquire product design software firm Ansys for $35 billion in a cash-and-stock deal.

Under the terms of the agreement, Ansys shareholders will receive $197 in cash and 0.3450 shares of Synopsys common stock for each Ansys share, representing an enterprise value of approximately $35 billion based on the closing price of Synopsys common stock on December 21, 2023.

Bringing together Synopsys' pioneering semiconductor electronic design automation (EDA) with Ansys' broad simulation and analysis portfolio will create a leader in silicon to systems design solutions, the company said in a statement.

“This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees,” said Sassine Ghazi, President and CEO of Synopsys.

Since its inception 37 years ago, Synopsys has been an innovation pioneer, central to world-changing semiconductor advances in computation, networking, and mobility, and now enabling the new era of 'pervasive intelligence.

"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," said Ajei Gopal, President and CEO of Ansys.

All Ansys customers, including those outside of the semiconductor industry, can benefit from access to a comprehensive portfolio of products and technologies that will drive innovation.

With this acquisition, Synopsys' total addressable market (TAM) is expected to increase by 1.5 times to approximately $28 billion.

The transaction is anticipated to close in the first half of 2025.

--IANS

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