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
News sentiment analysis
Sort by:
Descending
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
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
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