Street Calls of the Week
SUNNYVALE, Calif. - Synopsys, Inc. (NASDAQ:SNPS), a $90 billion market cap software giant with impressive gross profit margins of 81%, has received final regulatory approval to proceed with its planned divestitures of the Optical Solutions Group and PowerArtist businesses to Keysight Technologies, Inc.
The divestitures were mandated by regulatory authorities as a condition for Synopsys’ acquisition of Ansys, which closed on July 17, 2025. Synopsys expects to complete the transfer of these businesses to Keysight on or around October 17, 2025.
Financial terms of the divestiture agreements were not disclosed, with Synopsys noting that the transactions are not material to its financial results. The company stated it remains committed to ensuring a smooth transition for employees, customers and partners affected by the divestitures.
These business units were identified by regulators as necessary divestments to address potential competition concerns stemming from the Synopsys-Ansys combination, which brought together two major players in the engineering simulation and analysis software market.
Synopsys, which describes itself as a leader in engineering solutions from silicon to systems, completed its acquisition of Ansys approximately three months ago. The company provides silicon design, IP, simulation and analysis solutions across various industries.
The information was shared in a press release statement from Synopsys.
In other recent news, Synopsys has been the subject of several developments that could interest investors. KeyBanc reiterated its Overweight rating for Synopsys, setting a price target of $590, following an analysis of the company’s fiscal third-quarter results. Piper Sandler also maintained its Overweight rating but adjusted its price target to $630 from $660, citing potential disruptions in the company’s intellectual property business as a concern for future performance. Additionally, Synopsys announced an ongoing collaboration with TSMC to deliver multi-die solutions, which are certified for TSMC’s advanced processes and packaging technologies. This partnership includes the use of Synopsys’ 3DIC Compiler platform and 3D-enabled IP for advanced 3D stacking and CoWoS packaging technologies. Furthermore, Synopsys has unveiled a digital twin racetrack experience at the Aramco STEM Racing World Finals, with plans to enhance this technology for future STEM Racing seasons. This initiative aims to provide students with a virtual environment to test the aerodynamics of miniature F1 cars. The company also announced that TSMC has certified its Ansys portfolio for use with TSMC’s cutting-edge manufacturing processes, enhancing chip design accuracy for advanced nodes.
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