Synopsys to buy Ansys in an expected cash and stock deal valued at $35 billion

Synopsys Inc.
SNPS,
-0.81%
announced Tuesday a deal to buy design-software company Ansys Inc.
ANSS,
-3.16%
in a cash and stock deal valued at $35 billion. The stocks of both companies were halted for news. Under terms of the deal, Ansys shareholders will receive $197.00 in cash and 0.3450 Synopsys shares for each Ansys share they own. Based on Friday’s closing prices, that values Ansys shares at $367.57 each, a 6.1% premium, or a 21.2% premium to the closing price on Dec. 21, before The Wall Street Journal reported a deal was in the works. Synopsys Chief Executive Sassine Ghazi said that with the “megatrends of AI, silicon proliferation and software-defined systems” requiring more computing performance, merging the companies will provide “holistic, powerful and seamlessly integrated silicon to systems approach to innovation” to maximize research and development. The deal is expected to close in the first half of 2025. Ansys shares have rallied 36.4% over the past 12 months through Friday, while Synopsys’ stock has run up 48.5% and the S&P 500
SPX,
+0.08%
has climbed 19.6%.