Synopsys (NASDAQ:SNPS) stock is heading higher on Tuesday following news of a massive deal with Ansys (NASDAQ:ANSS).
This deal will see the two companies combine to create a leader in the silicon to systems design solutions space. That will have Synopsys spending $35 billion to acquire Ansys.
Synopsys will use a mix of cash and stock to acquire Ansys. The company will pay $197 and .3450 shares of SNPS stock for each share of ANSS stock. This represents a value of $390.19 per share based on closing prices on Dec. 21, the last day of trading before reports of the deal spread.
Sassine Ghazi, President and CEO of Synopsys, said the following about the deal:
“This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees.”
Details of the SNPS and ANSS Stock Deal
Synopsys says that it intends to fuel the $19 billion cash part of the offering with cash on hand and debt financing. The company also notes it has obtained $16 billion of “fully committed debt financing.”
Synopsys and Ansys are expecting the deal to close in the first half of 2025. First, it has to get approval from regulators as well as shareholders of ANSS stock.
SNPS stock is up 3.4% and ANSS stock is down 4.1% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
