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Investing.com-- Synopsys Inc (NASDAQ:SNPS) on Wednesday received conditional approval from the Federal Trade Commission for its planned $34 billion takeover of software developer ANSYS Inc (NASDAQ:ANSS), which will require the chip designer to sell some assets.
Synopsys’ shares surged 4.7% in aftermarket trade following the FTC announcement, although they were nursing a nearly 10% loss from Wednesday’s session. Ansys shares rose 2.3% after a 5.3% tumble during Wednesday’s session.
The FTC said Synopsys will need to sell its optical software tools and its photonic software tools, while Ansys will be required to sell a power consumption analysis tool.
Both firms will sell their assets to Keysight Technologies (NYSE:KEYS) Inc, the FTC said in a statement.
Synopsys is a major developer of software used to design semiconductors, while Ansys develops simulation software tools used for testing products, including chips.
A merger between the two companies had raised some concerns over what it could imply for competition in the chip design and testing industry.
This had also delayed the merger, which was announced in January 2024.