UK Provisionally Accepts Remedies in Synopsys-Ansys $35B Merger

The UK Competition and Markets Authority (CMA) is provisionally considering proposed remedies from Synopsys and Ansys, aimed at addressing potential competition concerns linked to their $35 billion acquisition deal. The companies, both prominent in the tech sector, offered specific divestments in response to the regulator’s initial findings.

Synopsys, a leader in electronic design automation, and Ansys, known for its engineering simulation and 3D design software, overlap in certain business areas. According to a statement from the CMA, these overlaps raised concerns about reduced competition in key markets, particularly Ansys’ power consumption analysis tools for digital chips and Synopsys’ optics and photonics software used in light-based technologies.

To alleviate these concerns, the companies proposed divesting parts of their businesses. Specifically, Ansys would relinquish control over its product related to power consumption analysis tools, while Synopsys would sell its global optics and photonics software business. The CMA acknowledged that these undertakings, submitted on December 31, 2024, might be sufficient to address competition risks under the Enterprise Act 2002.

Per a statement from the regulator, the CMA has until March 5, 2025, to make a final decision on whether to accept the proposed remedies. However, it retains the right to extend this period to May 6, 2025, if further deliberation is needed.

Read more: UK Competition Watchdog Considers Remedies for $35 Billion Synopsys-Ansys Deal

Following the CMA’s provisional acceptance, Synopsys expressed satisfaction with the progress. The company highlighted its ongoing dialogue with the regulator, underscoring its commitment to resolving regulatory issues and advancing the merger. “We are very pleased that today the CMA has taken the important step of provisionally accepting our proposed remedies in Phase 1 rather than referring the transaction to Phase 2,” the company noted in its statement.

Synopsys further reiterated its dedication to constructive engagement with the CMA as the process continues. It emphasized the importance of the merger for driving innovation across industries, pointing to growing demand for integrated system design solutions. The company stated, “Customers continue to express their overwhelming support for the transaction. Together, Synopsys and Ansys can help drive innovation across industries by addressing the rapidly increasing customer need for system design solutions that provide a deeper integration of EDA and Simulation and Analysis (S&A) software.”

The two companies anticipate finalizing the transaction within the first half of this year, pending the CMA’s final decision.

Source: Tech Monitor