By Edith Hancock
The European Commission approved Synopsys' $35 billion acquisition of Ansys after the companies offered to divest parts of their business to ease fears it could hinder competition.
The commission said Friday that the companies' offer to sell two business units to a rival fully addresses its concerns, saying the deal in its original guise could have impacted competition for optics software, photonics software and power consumption analysis software.
"Thanks to the clear structural remedies offered by the parties, competition in these markets will be preserved and customers will continue to have access to innovative tools at competitive prices," Teresa Ribera, the commission's head of competition enforcement, said Friday.
Synopsys, a Californian chip software design company, agreed to buy Ansys in January 2024. The transaction could help Synopsys extend its reach in simulation software for designers of microchips, cars and airplanes.
Both companies struck deals with U.S. competitor Keysight, which makes electronics test and measurement tools and software, to offload business units in recent months as their merger has worked its way through regulatory' reviews.
Synopsys said in September 2024 that Keysight agreed to buy its Optical Solutions Group. Keysight also agreed to take on Ansys' PowerArtist tool, which helps semiconductor companies gauge their power usage during the design process, earlier this month.
The U.K.'s Competition and Markets Authority also conditionally approved the deal after the companies offered remedies on Jan. 8.
Synopsys said in a statement that it was pleased with the clearance and that it still expects to close the deal in the first half of this year.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
01-10-25 1257ET