Latest news with #Ansys
Yahoo
2 days ago
- Business
- Yahoo
Synopsys (SNPS) Moves Ahead in Ansys Merger After FTC Divestiture Order
The Federal Trade Commission (FTC) issued a divestiture order on May 28, requiring Synopsys Inc. (NASDAQ:SNPS) and Ansys Inc. (NASDAQ:ANSS) to divest certain assets to resolve antitrust concerns surrounding their $35 billion merger. The FTC stated that the order is necessary to allow the deal to proceed while maintaining competition in software markets critical to the design of semiconductors and optical devices. bleakstar/ Announced in January 2024, Synopsys' acquisition of Ansys is part of its broader strategy to expand leadership in silicon-to-systems design. However, the FTC determined that the two companies compete directly in three key markets, and that the merger could lead to reduced innovation and higher prices for device manufacturers and consumers. After extensive negotiations, the FTC's proposed consent order allows the companies to move forward, provided they divest certain overlapping assets. Synopsys must sell its optical and photonic design software, which supports the simulation of components like LEDs, lenses, and fiber optics. Ansys is required to divest PowerArtist, a tool used for power optimization in chip design. These assets will be sold to Keysight Technologies (NYSE:KEYS). The companies must complete the divestitures within 10 days of Synopsys closing the acquisition. Both firms have already made progress in addressing regulatory concerns. On its quarterly earnings call on May 28, Synopsys reported receiving merger clearances in all jurisdictions except China. Synopsys provides end-to-end solutions for silicon-to-systems design, including EDA software, silicon IP, and system verification and validation. While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
2 days ago
- Business
- Yahoo
Here's Why Shares in Synopsys Popped Higher Today
The company received some good news on its intended landmark acquisition today. The deal will transform the company's long-term growth prospects. 10 stocks we like better than Synopsys › Shares in semiconductor design products company Synopsys (NASDAQ: SNPS) spiked higher by 5.5% in early trading today before settling back later in the day. The move came after the U.S. Federal Trade Commission (FTC) gave conditional approval for its intended $35 billion acquisition of simulation and analysis software company Ansys (NASDAQ: ANSS). For reference, the European Commission has already approved the acquisition. Synopsys is now awaiting approval from China before potentially closing the deal in the second half of 2026. The Ansys acquisition is a bold move, designed to stay ahead of the trend in its end markets. Synopsys manufactures electronic design automation (EDA) equipment used by semiconductor companies, as well as by a growing list of companies designing chips to embed in their technology. Meanwhile, Ansys makes simulation and analysis software that measures how physical products (including semiconductors) perform. As such, the "new" Synopsys will help companies design chips and products, and also help them analyze how they behave. It's an exciting deal because as semiconductors become increasingly embedded in a broader range of products with ever-increasing complexity, they will require more simulation analysis. The deal has become an integral part of the investment case for buying Synopsys stock, and the conditional FTC approval will likely please investors who purchased the stock in anticipation of the long-term growth opportunities arising from the deal. It's also in line with a larger trend in the industry -- Siemens recently acquired industrial simulation and analysis company Altair. Investors will be hoping that Synopsys completes the Ansys deal in due course. Today's news brought that possibility one large step closer. Before you buy stock in Synopsys, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Synopsys wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Synopsys. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy. Here's Why Shares in Synopsys Popped Higher Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Synopsys (SNPS) Moves Ahead in Ansys Merger After FTC Divestiture Order
The Federal Trade Commission (FTC) issued a divestiture order on May 28, requiring Synopsys Inc. (NASDAQ:SNPS) and Ansys Inc. (NASDAQ:ANSS) to divest certain assets to resolve antitrust concerns surrounding their $35 billion merger. The FTC stated that the order is necessary to allow the deal to proceed while maintaining competition in software markets critical to the design of semiconductors and optical devices. bleakstar/ Announced in January 2024, Synopsys' acquisition of Ansys is part of its broader strategy to expand leadership in silicon-to-systems design. However, the FTC determined that the two companies compete directly in three key markets, and that the merger could lead to reduced innovation and higher prices for device manufacturers and consumers. After extensive negotiations, the FTC's proposed consent order allows the companies to move forward, provided they divest certain overlapping assets. Synopsys must sell its optical and photonic design software, which supports the simulation of components like LEDs, lenses, and fiber optics. Ansys is required to divest PowerArtist, a tool used for power optimization in chip design. These assets will be sold to Keysight Technologies (NYSE:KEYS). The companies must complete the divestitures within 10 days of Synopsys closing the acquisition. Both firms have already made progress in addressing regulatory concerns. On its quarterly earnings call on May 28, Synopsys reported receiving merger clearances in all jurisdictions except China. Synopsys provides end-to-end solutions for silicon-to-systems design, including EDA software, silicon IP, and system verification and validation. While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Synopsys (SNPS) Moves Ahead in Ansys Merger After FTC Divestiture Order
The Federal Trade Commission (FTC) issued a divestiture order on May 28, requiring Synopsys Inc. (NASDAQ:SNPS) and Ansys Inc. (NASDAQ:ANSS) to divest certain assets to resolve antitrust concerns surrounding their $35 billion merger. The FTC stated that the order is necessary to allow the deal to proceed while maintaining competition in software markets critical to the design of semiconductors and optical devices. bleakstar/ Announced in January 2024, Synopsys' acquisition of Ansys is part of its broader strategy to expand leadership in silicon-to-systems design. However, the FTC determined that the two companies compete directly in three key markets, and that the merger could lead to reduced innovation and higher prices for device manufacturers and consumers. After extensive negotiations, the FTC's proposed consent order allows the companies to move forward, provided they divest certain overlapping assets. Synopsys must sell its optical and photonic design software, which supports the simulation of components like LEDs, lenses, and fiber optics. Ansys is required to divest PowerArtist, a tool used for power optimization in chip design. These assets will be sold to Keysight Technologies (NYSE:KEYS). The companies must complete the divestitures within 10 days of Synopsys closing the acquisition. Both firms have already made progress in addressing regulatory concerns. On its quarterly earnings call on May 28, Synopsys reported receiving merger clearances in all jurisdictions except China. Synopsys provides end-to-end solutions for silicon-to-systems design, including EDA software, silicon IP, and system verification and validation. While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Reuters
3 days ago
- Business
- Reuters
Mega-deal truce augurs gentler trustbuster norm
NEW YORK, May 29 (Reuters Breakingviews) - New competition cops are making their presence known. The U.S. Federal Trade Commission on Wednesday blessed the $35 billion merger of software developers Ansys (ANSS.O), opens new tab and Synopsys (SNPS.O), opens new tab, on the proviso, opens new tab that they offload some assets. It's the sort of truce that the previous administration broadly rejected, and heralds a gentler, albeit stricter than expected, trustbusting regime. Under Chair Lina Khan, the FTC consciously dismantled a looser antitrust policy ushered in during the late 1970s. Authorities ditched the practice of allowing companies to unite if they simply promised to abide by certain standards of conduct, or 'behavioral remedies' in the vernacular. They sued under novel theories of how deals might harm consumers and rejected even the premise of using divestitures to prevent overlapping business lines. Landmark court rulings reinforced the crackdowns, and more deals were abandoned before ever coming to light. Big transactions by technology giants Alphabet (GOOGL.O), opens new tab, (AMZN.O), opens new tab, Apple (AAPL.O), opens new tab and Meta Platforms (META.O), opens new tab withered, declining by roughly 60% from 2021 to 2023. A new merger rulebook ultimately codified the changes, but CEOs and merger practitioners anticipated that President Donald Trump's administration would wipe the slate clean. Instead, new FTC Chairman Andrew Ferguson embraced, opens new tab the updated guidelines, and on Wednesday he made clear that there would be no 180-degree turn. The aggressive strategies pursued by Khan and her Department of Justice counterpart, Jonathan Kanter, did encounter blowback. Some of their challenges ended in divestiture agreements, opens new tab, however contentiously. Aggressive dealmakers also got help from the courts. In an eight-page statement, opens new tab accompanying the conditional Synopsys approval, Ferguson and two colleagues stuck to a hard line while also calling Team Biden's approach 'hostile.' They rejected any 'categorical refusal' to consider divestiture remedies. And although agency officials acknowledged that the FTC had become 'too comfortable' with such caveats in the past, a tough new norm is taking shape. Some recent agreements planned for nuanced philosophical changes. Cloud computing company Salesforce (CRM.N), opens new tab, for example, will pay, opens new tab takeover target Informatica (INFA.N), opens new tab about 4.5% of the agreed $8 billion purchase price if regulators block the deal. Cybersecurity provider Wiz wrung a 10% fee from buyer Google. Eighteen-month contract lengths add extra breathing room, too. With the rules of the road becoming clearer, there's even a chance for a similarly modest rebound in M&A. Follow @JMAGuilford, opens new tab on X
