Chip designer Synopsys has received conditional approval from the US Federal Trade Commission (FTC) for its $35bn acquisition of software developer Ansys.
In January 2024, the companies signed a definitive agreement to execute the deal.
Go deeper with GlobalData
As per the latest conditions set forward by the FTC, Synopsys and Ansys must divest certain assets to Keysight Technologies to address antitrust concerns.
This divestiture aims to maintain competition in software tool markets essential for semiconductor and light simulation device design.
The FTC’s proposed divestiture order seeks to protect consumers from potential price increases for products such as cars, smartphones, and televisions.
FTC Bureau of Competition director Daniel Guarnera said: “The FTC’s action today protects Americans from higher costs for the countless everyday products that use computer chips, LED screens, fibre optic cables, and many other high-tech components.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The FTC’s divestiture order ensures that competition can thrive across software markets that are critical to designing the digital products that power Americans’ daily lives.”
Synopsys develops Electronic Design Automation software for semiconductor design, while Ansys offers Simulation & Analysis software for product testing, including semiconductors.
Under the proposed consent order, Synopsys will divest its optical software tools used for designing and simulating optical devices such as LED screens and lenses.
Additionally, Synopsys will divest its photonic software tools, which aid in designing devices using photons, like fibre optic cables and solar panels.
Ansys will divest its PowerArtist tool, which measures and optimises power consumption of digital chips during the Register Transfer Level design stage.
The consent order addresses FTC allegations of anticompetitive behaviour in optical, photonic, and RTL power consumption analysis tool markets.
The consent order mandates that Synopsys and Ansys complete divestitures within ten days of the acquisition’s closure.
The order also requires Synopsys and Ansys to provide transition services and technological support to enable Keysight to compete with the merged entity.
A monitor will oversee the consent order’s implementation, and a divestiture trustee will be appointed if divestitures are not completed, it said.
