The European Commission (EC) has approved US chip design software provider Synopsys’ deal to acquire engineering simulation specialist Ansys, subject to divestiture conditions.
Worth $35 billion, the cash-and-stock agreement was announced last January. It seeks to expand the company’s customer base and market position through “silicone-to-system” product sets. This is reportedly the biggest deal between two publicly traded companies since Broadcom’s $69 billion acquisition of VMware in 2023. Anysys’ process simulation software is leveraged throughout the additive manufacturing industry to optimize 3D printing designs. It has previously partnered with Materialise to integrate its simulation capabilities with the Magics build preparation tool.
The EC, an executive branch of the European Union (EU), found that Synopsys’ Ansys merger would stifle global competition in the optics, photonics, and register-transfer-level (RTL) power consumption analysis software markets, crucial to the chip design process.
Consequently, both firms have agreed to sell overlapping business operations to EC-approved buyers. Synopsys will divest its optics and photonics software, including Code V, LightTools, LucidShape, RSoft, and ImSym. The Silicon Valley-based company also agreed to transfer its Optical Solutions Group to Keysight Technologies in September 2024. Ansys will sell its PowerArtist RTL power consumption analysis platform.
According to the EC, these commitments address market choice and competition concerns, representing a significant step towards the acquisition’s completion. An independent trustee acting under the Commission’s supervision will monitor the implementation of these divestitures, a prerequisite for the acquisition’s approval.
Synopsys’ Ansys acquisition one step closer to completion
The EC concluded that a non-amended merger would have resulted in higher prices and less choice for customers. Following positive feedback during a market test, the Commission believes the modified deal will “no longer raise competition concerns.” However, this agreement does not mean Synopsys’ Ansys acquisition is guaranteed. Further regulatory checks must be completed amid wider concerns regarding its impact on market conditions.
Last month, the UK’s Competition and Markets Authority (CMA) found that the proposed purchase could reduce competition in Britain’s supply of semiconductor chip design and light simulation products. This would reportedly stunt innovation, resulting in lower-quality software and higher prices for UK businesses and consumers. Last week, the CMA noted that it is willing to accept Synopsys and Ansys’ divestment offer as grounds for approval.
Elsewhere, the US Federal Trade Commission (FTC) is reviewing the $35 billion acquisition. It conducted an initial review in March 2024, reaching out for information from third parties. A second request for information was made the following month. Similarly, Taiwan’s Fair Trade Commission is reportedly reviewing an antitrust filing for the business combination. Announced in November, this process is expected to take several months.
This follows a 2022 US Department of Commerce investigation into Synopsys amid allegations that the firm had illegally shared chip designs with Huawei Technologies Co.’s HiSilicon business unit for production at Semiconductor Manufacturing International Corp (SMIC). These Chinese companies are designated as threats to national security by the Commerce Department’s Bureau of Industry and Security. China’s State Administration for Market Regulation (SAMR) is also reviewing the $35 billion transaction, and will reportedly require behavioral remedies specific to the country’s market.
3D printing software mergers and acquisitions
2024 reportedly saw $369 billion recorded in software-related business transactions. This included Siemens’ agreement to acquire Altair Engineering Inc., a 3D design and simulation software developer. Worth approximately $10 billion, this agreement seeks to strengthen the German tech multinational’s market position and create the “world’s most complete AI-powered design and simulation portfolio.”
Expected to close in the second half of 2025, Siemens’ Altair deal is its third-largest acquisition to date. This will see the company combine its products with Altair’s software portfolio and provide the Michigan-based firm with a global footprint. It is hoped that the new business combination will provide $500 million per year in the medium term, and over $1 billion per year in the long.
In December 2024, US-based 3D Systems agreed to sell its Geomagic reverse-engineering software to Hexagon’s Manufacturing Intelligence Division. The $123 million deal forms part of the Rock Hill-based 3D printer manufacturer’s review to prioritize software it deems central to accelerating the adoption of its additive manufacturing technology.
Elsewhere, 3D printing service provider Shapeways recently acquired a majority stake 3D file-sharing platform Thangs, taking the reins from the site’s developer Physna, Inc. This represented the second phase of Shapeways’ strategy to revive the company following its er its Chapter 7 bankruptcy filing in July 2024.
Hosting over 24 million 3D printable models, Thangs allows users to monetize their designs. By integrating Shapeways’ digital manufacturing engine, designers can now sell physical products directly to buyers through a new print-on-demand approach.
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Featured image shows the Ansys headquarters. Photo via Ansys.
