Synopsys Completes Acquisition of Ansys | SNPS Stock News

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  • Synopsys (SNPS, Financial) expands into a $31 billion total addressable market (TAM) after acquiring Ansys.
  • First integrated capabilities from the merger expected by H1 2026, focusing on multiphysics and advanced packaging.
  • Ansys executives Ajei Gopal and Ravi Vijayaraghavan to join Synopsys' board, offering strategic continuity.

Synopsys (NASDAQ: SNPS) has finalized its acquisition of Ansys, creating a formidable entity in engineering solutions that extends from silicon design to complete systems. Initially announced on January 16, 2024, this strategic merger positions Synopsys to tap into an expanded total addressable market valued at $31 billion. The combination is set to enhance Synopsys' capabilities in electronic design automation (EDA) and semiconductor IP, now complemented by Ansys' strengths in physics-based simulation and analysis.

The integration roadmap reveals that the first set of combined features is anticipated in the first half of 2026. These features will focus on integrating multiphysics across the EDA stack with advanced packaging for multi-die systems—a crucial technology for the next-generation AI chips and high-performance computing sectors.

Joining Synopsys' board are former Ansys executives Ajei Gopal and Ravi Vijayaraghavan, a move likely to ensure a smooth transition and leverage Ansys' rich institutional knowledge. The company expects to see significant financial benefits, including margin expansion and increased unlevered free cash flow, leading to rapid deleveraging within two years. This aligns with Synopsys' strategy to maintain financial discipline while maximizing synergies from the acquisition.

The merger reflects Synopsys' commitment to providing holistic system design solutions across diverse industries, including semiconductors, automotive, aerospace, and industrial sectors. By enhancing its product portfolio, Synopsys aims to help customers innovate faster, reduce time-to-market, and improve product quality with AI-powered solutions.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.