Sassine Ghazi, President and CEO of Synopsys, emphasized during a recent earnings call that customer support for the acquisition will "pave the way for new AI - driven design solutions that blend electronics and physics" and provide the R&D team with more advanced innovation tools. This acquisition is part of Synopsys' strategic initiatives to expand its comprehensive portfolio in electronic design automation, silicon IP, and system verification and validation. The aim is to enhance Synopsys' competitiveness in the high - end design market by integrating Ansys' engineering simulation software.
Moreover, Synopsys announced strong first - quarter fiscal 2025 earnings. Earnings per share (EPS) were $3.03, exceeding the expected $2.79, and revenue was $1.46 billion, slightly above the expected $1.45 billion. This performance is in line with the company's historical trend of meeting or exceeding market expectations. Currently, Synopsys is actively seeking regulatory approvals in other jurisdictions, and the transaction is expected to close in the first half of 2025.
The UK competition regulator has approved Synopsys' $35 billion acquisition of Ansys, after the two companies addressed concerns about potential innovation stifling and price hikes. Subject to regulatory approvals and other customary closing conditions, Ansys will become a wholly - owned subsidiary of Synopsys, strengthening Synopsys' market position by integrating its software products with Ansys' engineering simulation software.
Synopsys has filed further documents related to the merger with the Securities and Exchange Commission, including Ansys' audited financial statements. After the company's first - quarter results exceeded expectations and the future guidance was positive, Stifel, an analytical firm, maintained a buy rating on Synopsys with a price target of $620. Despite challenges in the Chinese market, Stifel remains optimistic about Synopsys' growth potential, especially considering the expected launch and monetization of AI - related tools.
