How Synopsys’ $35bn Ansys Deal Reshapes Engineering Software

Synopsys has completed its acquisition of Ansys following conditional approval from China’s market regulator, creating what the companies describe as a leader in engineering solutions spanning silicon design to complete systems. 

First announced in January 2024, the deal combines two companies that have maintained a partnership for several years. 

Synopsys has built its reputation as a leader in electronic design automation tools and semiconductor intellectual property, providing the software that chip designers use to create everything from smartphone processors to data centre semiconductors.

Ansys, meanwhile, has established itself as the dominant force in simulation software, enabling engineers across industries to model how products will behave in real-world conditions before physical prototypes are built.

Its software simulates everything from airflow over aircraft wings to heat dissipation in electronic devices.

“Today marks a transformational milestone for Synopsys,” says Sassine Ghazi, President and CEO of Synopsys.

“For decades, Synopsys has been delivering breakthroughs in silicon design and IP that have fuelled chip innovation.

“The increasing complexity of developing intelligent systems demands design solutions with a deeper integration of electronics and physics, enhanced by AI.”

With the acquisition having closed, former Ansys President, CEO and board member Ajei Gopal will join Synopsys’ board of directors with immediate effect.

Ravi Vijayaraghavan, a former Ansys board member, will also take a position on the Synopsys board.

“For half a century, Ansys has enabled innovators across industries to push boundaries with the predictive power of simulation and analysis,” says Ajei.

“Our companies have a common culture, a successful longstanding partnership and now a united mission to empower innovators to drive human advancement.”

Acquisition secures final regulatory approvals

The acquisition required approval from multiple regulatory authorities across key markets, with the process extending over 18 months.

The European Commission granted Phase 1 approval in January 2025, while the UK’s Competition and Markets Authority provisionally accepted proposed remedies for Phase 1 approval.

In the United States, the HSR Act waiting period expired, though the companies continued working with the Federal Trade Commission on proposed remedies review.

China’s State Administration for Market Regulation (SAMR) called in the transaction despite it falling below China’s standard merger notification thresholds.

SAMR took the position that approval was required regardless of threshold levels, marking the first published instance of the regulator exercising its discretionary power to call in a foreign-to-foreign merger.

Its final approval came with conditions requiring Synopsys to divest its entire optical and photonic-device simulation business, while Ansys must divest its power consumption-analysis software operations.

The regulator also imposed behavioural remedies for 10 years, requiring the companies to honour existing customer contracts and refrain from bundling or tying their respective products.

Synopsys announced on 14 July 2025 that it had received approval from all necessary authorities to proceed with the acquisition.

Synopsys plans integrated capabilities for 2026 launch

The combined company expects to deliver its first integrated capabilities in the first half of 2026, focusing on multiphysics simulation across the complete electronic design automation stack.

These tools will address current challenges in areas such as multi-die advanced packaging, where multiple chips must work together in single packages.

In a video announcing the acquisition, Synopsys CEO Sassine outlined specific applications across multiple industries.

In automotive, the technology could help engineers “design, optimise and virtualise cars’ features and functions...all in software and before the start of production”.

Future capabilities could determine “an EV’s exact range in sub-zero temps without a real-world test” or establish “exactly how safety features perform without ever crashing a real car,” he added.

For aerospace applications, the new combined company could help “aeronautical engineers explore new materials and alternative fuels to reduce emissions”.

Sassine envisions “fuel-sipping planes gliding through air as efficiently as sharks in the ocean thanks to a bio-mimetic coating developed, tested and simulated in software”.

Integrated design solutions could also help semiconductor engineers pack even more performance and features into smaller, multi-stacked chips, says Sassine.

“Imagine data centres getting smaller and more energy efficient because of step-function improvements in silicon design,” he adds.

“With Ansys’ leading system simulation and analysis solutions now part of Synopsys, we can maximise the capabilities of engineering teams broadly, igniting their innovation from silicon to systems.

“By re-engineering how intelligent products are engineered, we will ignite innovation from silicon to systems and empower innovators everywhere to drive human advancement.”