Tech Giants In Talks: Synopsys Reportedly Aims For Blockbuster Acquisition Of Ansys In 2024
Portfolio Pulse from Nabaparna Bhattacharya
Synopsys, Inc. (NASDAQ:SNPS) is in talks to acquire ANSYS, Inc. (NASDAQ:ANSS), potentially creating a major design-software entity. The deal, which could materialize in early 2024, would combine Synopsys' chip design software expertise with Ansys' product performance forecasting software. Ansys is valued at $30 billion, while Synopsys has a valuation of $85 billion. The tech sector has seen a slowdown in M&A activity, but this acquisition could be a significant early deal in 2024. SNPS shares fell 6.34% to $524.46, then rose 0.67% after hours, while ANSS shares surged 18.08% to $357.98, then increased 2.35% after hours.
December 23, 2023 | 7:36 pm
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NEGATIVE IMPACT
Synopsys is negotiating the acquisition of Ansys, which could significantly expand its design-software capabilities. The stock experienced a decline of 6.34% to $524.46 but slightly recovered after hours.
The short-term impact on SNPS stock is negative due to the potential costs and risks associated with the acquisition. However, the after-hours recovery suggests some investor optimism.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Advanced Micro Devices, as a Synopsys customer, could see minor indirect effects from the potential Synopsys-Ansys acquisition.
AMD's relationship with Synopsys could be affected by the acquisition, but the short-term impact on AMD's stock is likely negligible.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Intel Corporation, a Synopsys client, might be peripherally impacted by the Synopsys-Ansys acquisition talks, with little immediate effect on its stock.
Intel's dealings with Synopsys may change if the acquisition occurs, but the short-term impact on INTC stock is expected to be minimal.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
NVIDIA, a customer of Synopsys, may be indirectly affected by Synopsys' potential acquisition of Ansys, but the impact is likely minimal.
As a customer of Synopsys, NVIDIA may experience changes in its business relationship with Synopsys post-acquisition, but the immediate financial impact is likely limited.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
POSITIVE IMPACT
ANSYS could be acquired by Synopsys, which has led to an 18.08% increase in its stock price to $357.98, with further gains after hours.
The positive short-term impact on ANSS stock is due to the premium typically offered in acquisition deals, reflected in the significant stock price increase.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100