How to land a $35B tech deal in the AI hardware race
Synopsys’ $35 billion acquisition of Ansys creates a new leader in silicon-to-systems design. The challenge now: delivering on the promise of integration by 2026.
Synopsys’ $35 billion acquisition of Ansys creates a new leader in silicon-to-systems design. The challenge now: delivering on the promise of integration by 2026.
When Synopsys announced its $35 billion acquisition of Ansys in early 2024, the deal was billed as a bet on the future of electronics and AI.
Eighteen months later, that bet has closed—positioning Synopsys to become a rare kind of tech player: one that bridges chip design, simulation, and end-to-end system engineering at scale.
The acquisition, finalized last week, is not just one of the largest in the electronic design automation (EDA) sector’s history—it is a calculated move to seize a rapidly expanding $31 billion total addressable market.
By combining Synopsys’ leadership in chip design and intellectual property with Ansys’ strength in simulation and analysis, the company is building an integrated design environment that it says competitors cannot match.
The integration comes at a critical time. Designing AI-driven products—whether self-driving cars, industrial robots, or advanced computing systems—has grown exponentially more complex.
Engineers must now consider power consumption, thermal dissipation, and multi-layered physics across chips, components, and entire systems.
Shelagh Glaser, Synopsys’ CFO, called the deal a “historic point for our company and the industry,” noting that the unified platform will allow customers to model and test these challenges earlier and more accurately.
“The ability for us to be able to create this unified design environment is quite unique,” she said in an interview.
For Synopsys, uniqueness is the selling point.
The company’s EDA software already dominates chip design. Adding Ansys’ simulation tools enables it to deliver what executives describe as “silicon-to-systems” solutions—critical for clients developing products that must function flawlessly in unpredictable real-world conditions.
Synopsys and Ansys were not strangers before the merger. The two companies had been partners since 2017, collaborating on joint go-to-market programs.
That pre-existing alignment is expected to smooth integration efforts, which will unfold over the next 18 months.
The first set of combined capabilities is scheduled for the first half of 2026, with executives pointing to March as a likely launch window.
These solutions will target multiphysics across the full EDA stack, including advanced packaging for multi-die chips—a design approach essential for scaling AI systems.
The roadmap also includes new testing and virtualization tools for complex systems, particularly in automotive and aerospace, where the costs of design flaws are high and regulatory scrutiny is intense.
The transaction not only expands Synopsys’ technology footprint but also strengthens its financial profile.
The company expects the acquisition to drive margin expansion and generate greater unlevered free cash flow, with plans for rapid deleveraging over the next two years.
Investors appear to share the optimism. Synopsys stock rose 1.2% following the deal’s completion, closing at $591.46 and maintaining its place on the IBD Tech Leaders list.
The $35 billion price tag signals confidence that the combined company can deliver value in a market increasingly shaped by AI.
“Since we announced the acquisition, the rise of physical AI has been much more rapid than anyone anticipated,” Glaser said, pointing to new demands from industries racing to build intelligent systems.
Former Ansys CEO Ajei Gopal, now on Synopsys’ board, expressed confidence in the transition, citing the companies’ shared culture and longstanding partnership.
But as with any large-scale acquisition, market expectations will hinge on whether the promised synergies materialize.