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PITTSBURGH/SUNNYVALE - Synopsys, Inc. (NASDAQ:SNPS) and Ansys (NASDAQ:ANSS), a simulation software company valued at $30.52 billion with impressive gross margins of 92.5%, announced Monday they are in "advanced stage" discussions with Chinese regulators to secure the final approval needed for their proposed acquisition.InvestingPro data shows Ansys maintains strong financial health with consistent growth, boasting revenue growth of nearly 16% over the last twelve months.
According to a statement released by both companies, the merger has already received regulatory clearance in all jurisdictions except China. The companies said they continue to work collaboratively with China’s State Administration for Market Regulation to obtain this last required approval.
"We have already received merger clearance in every jurisdiction other than China based on the merits of our transaction and the significant benefits it is expected to bring to all our stakeholders and the future of technology innovation," the companies stated in their joint release.
The proposed acquisition would combine Synopsys, which provides electronic design automation solutions, with Ansys, a simulation software company that serves industries ranging from transportation to semiconductors and medical devices.
Neither company provided a specific timeline for when they expect to receive the Chinese regulatory approval or complete the transaction.
The statement comes as the companies work to finalize the deal amid ongoing regulatory scrutiny of technology mergers, particularly those involving semiconductor-related technologies.
The information in this article is based on a press release statement from the companies.
In other recent news, ANSYS, Inc. reported first-quarter 2025 results that did not meet analyst expectations. The company posted revenue of $504.9 million, which was an 8.2% increase year-over-year but fell short of the consensus estimate of $528.28 million. Additionally, adjusted earnings per share were $1.64, missing projections of $1.76. ANSYS experienced a slight growth in annual contract value, with a 0.7% increase compared to Q1 2024, and a 2.3% increase on a constant currency basis. Despite these results, ANSYS expressed confidence in achieving double-digit growth in annual contract value for the fiscal year 2025.
In other developments, the planned $35 billion merger between Synopsys and ANSYS has faced a delay due to China’s market regulator postponing its approval. This decision comes amid heightened tensions following the U.S. tightening chip export controls against China. The merger, which had reached the final approval stage, is now subject to further regulatory scrutiny. The deal is expected to close in the first half of 2025, pending these regulatory approvals.
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