share_log

Ansys | 425: Filing under Securities Act Rule 425 of certain prospectuses and communications in connection with business combination transactions

SEC announcement ·  Jan 17 00:00
Summary by Moomoo AI
On January 16, 2024, Synopsys, Inc. announced its plan to acquire Ansys, Inc., a leader in simulation and analysis, in a transformative move to create a leader in silicon to systems design solutions. The acquisition, valued at approximately $19 billion, is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. The deal will be funded through a combination of cash and debt, with Synopsys obtaining $16 billion of fully committed financing. The transaction is anticipated to expand Synopsys' total addressable market by 1.5 times to approximately $28 billion and is expected to generate significant long-term value for shareholders. The combined company aims to address the increasing complexity in system design driven by the fusion of electronics and...Show More
On January 16, 2024, Synopsys, Inc. announced its plan to acquire Ansys, Inc., a leader in simulation and analysis, in a transformative move to create a leader in silicon to systems design solutions. The acquisition, valued at approximately $19 billion, is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. The deal will be funded through a combination of cash and debt, with Synopsys obtaining $16 billion of fully committed financing. The transaction is anticipated to expand Synopsys' total addressable market by 1.5 times to approximately $28 billion and is expected to generate significant long-term value for shareholders. The combined company aims to address the increasing complexity in system design driven by the fusion of electronics and physics, augmented with AI. Synopsys and Ansys have had a strategic partnership since 2017, which has already seen strong customer momentum. The acquisition is set to enhance Synopsys' silicon to systems strategy and expand its presence in adjacent growth areas. Financially, Synopsys reported nearly $6 billion in revenue for 2023, a 15% year-over-year growth, with a 35% non-GAAP operating margin. Ansys also indicated that its preliminary results for the fourth quarter of 2023 are expected to exceed the high end of its guidance, resulting in a 13% ACV growth for the year. The transaction is expected to immediately expand margins and be accretive to non-GAAP EPS within the second full year post-close. Synopsys and Ansys aim to realize $400 million of run rate cost synergies by year three and $400 million of run rate revenue synergies by year four, growing to over $1 billion annually in the long term.

This announcement is a separate document:

Doc 1

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more