US-based chip design software provider Synopsys has signed a definitive agreement to acquire engineering simulation software developer Ansys.
The cash-and-stock deal is worth $35 billion, and will see Ansys shareholders receive $197 in cash and 0.345 shares of Synopsys common stock for each share of Ansys.
Announced on 16 January, this acquisition values Ansys at $390.19 per-share. Ansys’ share price on December 21, the company’s last day of trading, was $559.96. Following news of the acquisition, Synopsys shares grew 3.8% to $513. Ansys shares, however, fell 4.8% to $329.86.
Synopsys hopes that the deal will expand its customer base and market position through the production of “silicone-to-system” product sets.
“By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation,” added Ansys CEO and President Ajei Gopal. “This transformative combination brings together each company’s highly complementary capabilities to meet the evolving needs of today’s engineers and give them unprecedented insight into the performance of their products.”
Ansys’ process simulation software is leveraged throughout the additive manufacturing industry to optimize designs for 3D printing. The company recently announced a collaboration with leading 3D printing software developer Materialise, integrating its process simulation capabilities with the Magics build preparation tool.
The acquisition is set to be finalized in the first half of 2025, pending Ansys shareholder approval, necessary regulatory clearances, and the satisfaction of other customary closing conditions.
Synopsys and Ansys combination to bolster AM design?
Based in Silicon Valley, Synopsys develops software tools that enable chip makers to design and test their processors. The company boasts a range of high-level customers, including global GPU manufacturers Nvidia and Intel.
Synopsys and Ansys have both stated that this combination will meet customer desire to fuse “electronics and physics,” with chipmakers reportedly looking to design larger appliances.
The deal also seeks to expand Synopsys’ reach to automotive, aviation, and industrial equipment manufacturers, who are identifying a growing role of semiconductors in their products. Ansys already possesses a strong presence within these industries.
The fusion of Synopsys and Ansys is also set to impact the additive manufacturing market, with Synopsys likely to expand its 3D printing software portfolio. Indeed, this deal will see Synopsys acquire Ansys’ comprehensive suite of Computer Aided Design (CAD) and process simulation software optimized for additive manufacturing.
Ansys’ additive manufacturing software offerings include its Additive Suite end-to-end 3D printing workflow, Additive Print process simulation, GRANTA MI Enterprise materials database, and Ansys Discovery for 3D design. These design and simulation software platforms compete with additive manufacturing tools such as Fusion360 and AutoCAD from Autodesk, and Dassault Systemes’ Solidworks.
Prior to this acquisition, Ansys had been working to further develop and expand its additive manufacturing portfolio. In 2021, the company announced a collaboration with Private U.S. Aerospace firm Launcher and 3D printer manufacturer Velo3D to optimize the design of a performance critical component in Launcher’s 3D printed E-2 rocket engine.
During this project, the engineering team leveraged the Ansys CFX computational fluid dynamics (CFD) platform. This simulation software was used to ensure that the rocket’s projected level of thrust matched its performance, before optimizing its parameters via simulated run tests.
More recently, it was announced during Formnext 2023 that Ansys had collaborated with 3D printing software developer Materialise. This partnership will see Ansys integrate its Additive Suite into Magics, Materiliase’s 3D printing data and build preparation tool.
Set to launch in Q2 2023, this new end-to-end 3D printing platform will enable Magics users to easily access Ansys’ simulation software as part of a singular streamlined workflow. This will reportedly alleviate issues associated with data transfer between different design and simulation platforms.
“Since inception 37 years ago, Synopsys has been an innovation pioneer, central to world-changing semiconductor advances in computation, networking, and mobility, and now enabling the new era of ‘pervasive intelligence,’ commented Aart de Geus, Executive Chair and Founder of Synopsys.
“Our Board and management team carefully evaluated our top strategic options to lead and win in this fast-growing new wave of electronics and system design.”
Investment in 3D printing software
The 3D printing industry has recently witnessed a substantial amount of investment into 3D printing software companies.
Last year, London-based 3D printing software developer Ai Build raised $8.5 million in a series A funding round led by IQ Capital. The funding round also drew support from Japanese optics and imagine multinational Nikon.
Founded in 2015, Ai Build offers AI-powered software which seeks to increase the accessibility and automation of additive manufacturing. The company’s AiSync software uses AI and machine learning (ML) to provide tool path optimization and quality control for industrial 3D printing applications.
Elsewhere, Cognitive Design Systems (CDS) recently raised €2 million to expedite the technological progression of its 3D printing generative design platform. The funding will also be used to broaden the company’s market reach and sales across Europe and the US.
CDS software seeks to overhaul the engineering and design workflow by incorporating AI and automation into the CAD design process. Through this offering, the company hopes to slash design cycle times, and boost efficiency and innovation in additive manufacturing.
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Featured image shows the Ansys Headquarters. Photo via Ansys.
