The European Commission announced on Friday that it has approved, under certain conditions, the takeover of software company Ansys by chip design software maker Synopsys. This $35 billion cash-and-stock deal, initially announced in January of the previous year, has now cleared a major regulatory hurdle in Europe. The approval is contingent upon Synopsys' offer to sell two business units to a rival.
The commission stated that the companies' offer to sell these two business units fully addresses its concerns regarding potential impacts on competition. This resolution allows the merger to proceed in the European Union, a critical jurisdiction for such a large-scale technology acquisition. The divestitures are a standard mechanism to ensure market competition is maintained post-merger.
This conditional clearance from the EU is a significant step towards the completion of the acquisition, which is anticipated to close in the first half of 2025. The removal of this major regulatory obstacle provides greater certainty for the transaction, which aims to combine Synopsys' electronic design automation with Ansys' broad simulation and analysis portfolio.
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