The UK's Competition and Markets Authority (CMA) has raised concerns about the potential merger between Synopsys (SNPS, Financial) and Ansys (ANSS), suggesting it could lead to higher prices and reduced competition. The CMA stated that the merger might limit options for global and UK companies that rely on these software products, potentially stifling innovation, reducing software quality, and increasing costs for UK businesses and consumers.
Synopsys has responded by taking steps to address these concerns, including selling its optical solutions business to Keysight Technologies (KEYS). The company remains committed to working constructively with the CMA on proposed remedies. The CMA initiated an antitrust investigation into the deal in October, and both companies have proposed measures to gain EU approval.
Synopsys had announced the acquisition of Ansys for $35 billion in cash and stock in January. Recently, Synopsys shares fell nearly 2% pre-market, while Ansys shares dropped nearly 1%.
