Synopsys offers remedies to address EU concerns over Ansys deal

The management of Synopsys, the company providing chip design software, has proposed solutions to address EU competition concerns related to its $35 billion all-cash and stock acquisition of Ansys. This information was disclosed in a European Commission filing made on Tuesday.

The deal, announced in January this year, is the largest in the technology sector since Broadcom’s $69 billion offer for VMware in November 2023.

The EU competition authority, which did not disclose details of the proposed remedies due to its confidentiality policy, set a deadline of January 10. The Commission may also seek input from competitors and customers regarding the proposed concessions before determining whether they are sufficient or if additional measures are required.

If significant concerns remain, the EU regulator could launch a four-month in-depth investigation.

In September, Synopsys announced that it would divest its Optical Solutions Group, a provider of optical design tools, to Keysight Technologies, a company specializing in design and emulation solutions. This transaction is set to be completed after the Ansys acquisition.

Last month, the European Commission sought feedback from competitors and customers concerning the deal. The primary focus was on Electronic Design Automation (EDA) software, services, and hardware used in chip development, specifically assessing whether such tools are compatible with those offered by competitors, according to a Commission document reviewed by Reuters.

The EU watchdog also investigated whether EDA vendors bundle their products as part of service packages.