Electronic design automation firm Synopsys will fulfill its goal of becoming a silicon-to-systems design firm now that it has completed its acquisition of Ansys, a senior executive says. Synopsys stock rose Monday.
"This is a historic point for our company and the industry," Synopsys Chief Financial Officer Shelagh Glaser told Investor's Business Daily.
Synopsys completed the cash-and-stock deal on Thursday. When it was first announced in January 2024, the transaction was valued at $35 billion.
With Ansys, Synopsys can now deliver holistic system design solutions for customers in industries spanning semiconductors, data centers, automotive, aerospace, industrial and more.
"The ability for us to be able to create this unified design environment is quite unique," Glaser said.
Synopsys is the leader in EDA software for chip design, while Ansys is tops in simulation and analysis software.
The two companies have partnered since 2017 so they already had go-to-market sales programs, Glaser said.
Now the two teams will be working on integrating their software products. Synopsys expects to have its first set of combined capabilities in the first half of 2026, possibly around March, she said.
Synopsys Stock Advances
On the stock market today, Synopsys stock rose 1.2% to close at 591.46.
The Synopsys-Ansys deal was necessitated by the increasing complexity of electronic systems, Glaser said. For instance, power and thermal dissipation issues are critical when designing artificial intelligence computing systems, she said.
Having a unified design environment will enable customers to better understand the challenges they will face at the physical system level, Glaser said.
Since Synopsys announced the acquisition, "the rise of physical AI has been much more rapid than anyone anticipated," she said. That includes such things as self-driving electric vehicles and industrial robots.
Synopsys stock is on the IBD Tech Leaders list.
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