Synopsys Set to Win Conditional EU Antitrust Approval for Ansys Acquisition

By Foo Yun Chee

BRUSSELS (Reuters) – U.S. chip design software company Synopsys (NASDAQ: SNPS) is poised to gain conditional EU antitrust approval for its $35 billion acquisition of Ansys (NASDAQ: ANSS), sources familiar with the situation said on Monday.

This acquisition marks the largest technology sector deal since Broadcom’s (NASDAQ: AVGO) $69 billion acquisition of software maker VMware (NYSE: VMW) last year and is the first significant merger under new EU antitrust chief Teresa Ribera.

To mitigate EU competition concerns, Synopsys proposed to divest its optical design tool maker Optical Solutions Group, along with Ansys PowerArtist, according to additional sources from Reuters.

The company is also expected to present similar solutions to the UK competition watchdog, following their expressed worries about the deal’s impact on innovation and pricing last week, sources revealed.

The European Commission, responsible for enforcing antitrust regulations in the 27-country EU, is set to conclude its preliminary review of the acquisition on January 10. No comments have been made by the Commission regarding the deal.

Synopsys also opted not to comment but reiterated its stance to the UK Competition and Markets Authority, highlighting the planned divestment of its Optical Solutions business.

Companies are observing Ribera, who recently assumed her role, for indications on whether she will maintain the stringent approach towards Big Tech mergers established by her predecessor, Margrethe Vestager.

Ansys’ software is utilized for creating a wide range of products, from airplanes to tennis rackets used by players like Novak Djokovic. Its PowerArtist tool aids in analyzing and minimizing power consumption to ensure energy-efficient designs.