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Synopsys Inc . (NASDAQ:SNPS), a leader in prepackaged software services with a market capitalization of $72.74 billion, has provided an update on its proposed acquisition of Ansys (NASDAQ:ANSS) Inc., a Delaware corporation. The merger, which was initially announced on January 15, 2024, is progressing as Synopsys filed additional documentation with the Securities and Exchange Commission (SEC) on Thursday. According to InvestingPro data, Synopsys maintains impressive gross profit margins of 81.44% and holds more cash than debt on its balance sheet, demonstrating strong financial health for this strategic acquisition.
The recent filing includes audited consolidated financial statements of Ansys for the years ended December 31, 2024, and December 31, 2023. These statements encompass balance sheets, income, comprehensive income, equity, and cash flows, along with notes and an independent auditor’s report from Deloitte & Touche LLP.
Furthermore, Synopsys has presented unaudited pro forma condensed combined financial statements that illustrate the potential financial impact of the merger. This pro forma information includes a condensed combined balance sheet as of January 31, 2025, and condensed combined statements of operations for the year ended October 31, 2024, and the three months ended January 31, 2025.
The filings underscore that the pro forma financial data is prepared for informational purposes based on certain assumptions and estimates. It is intended to provide an idea of what the financial situation might have been had the merger been completed on the dates assumed for the pro forma financial information. However, it does not project future financial outcomes. With revenue growth of 15.22% in the last twelve months and a strong current ratio of 2.44, Synopsys demonstrates robust operational performance. For deeper insights into Synopsys’ financial health and detailed valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
Synopsys emphasizes that the current report does not revise the financial statements included in its annual or quarterly reports. Instead, it supplements and supersedes previous unaudited pro forma financial information related to the merger. The information in this report is based on a press release statement.
The merger, pending regulatory approval and other customary closing conditions, would result in Ansys becoming a wholly owned subsidiary of Synopsys. This strategic move is anticipated to enhance Synopsys’ position in the market by combining its software offerings with Ansys’ engineering simulation software.
Investors and interested parties can access the filed documents free of charge via the SEC’s website or Synopsys’ investor relations page.
The communication regarding the merger is not an offer to sell or a solicitation of an offer to buy any securities. The forward-looking statements in the communication are subject to various risks and uncertainties, and actual results may differ materially. While 12 analysts have recently revised their earnings expectations downward for the upcoming period, the consensus remains positive with price targets ranging from $496.12 to $690. InvestingPro offers 14 additional valuable insights about Synopsys, including detailed analysis of its valuation metrics and growth potential.
Synopsys and Ansys caution that the forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual events to differ significantly. Neither company undertakes any obligation to update these statements in light of new information or future events.
In other recent news, Synopsys Inc. reported its first-quarter results for fiscal year 2025, surpassing Wall Street expectations. The company posted earnings per share of $3.03, exceeding the forecast of $2.79, and generated revenue of $1.46 billion, slightly above the anticipated $1.45 billion. The company’s management has maintained its fiscal 2025 outlook, which analysts at Stifel view favorably amid ongoing challenges in the China market. Despite a significant decline in China-based revenue, Stifel analysts anticipate stabilization in the region and are optimistic about Synopsys’ potential for a rebound to robust double-digit growth. This confidence is tied to the anticipated introduction and monetization of AI-related tools, with further details expected at the upcoming SNUG conference. Additionally, Synopsys provided guidance for full-year revenue between $6.745 billion and $6.805 billion, with an expected revenue growth of 10.1% to 11.1%. The company also anticipates a non-GAAP EPS growth of approximately 13%, reflecting positive guidance for future quarters.
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