UK antitrust regulator puts Synopsys’ $35B acquisition of Ansys under the microscope

The “invitation to comment” notification of the CMA has asked stakeholders and interested parties to voice their concerns, after which the regulator will decide whether to escalate the investigation to a formal merger inquiry.

Synopsys, a leading provider of electronic design automation (EDA) tools, announced its intentions to acquire Ansys in January. Ansys, known for its simulation software, helps engineers across various industries, including the semiconductor sector, model and analyze the physical behavior of products.

The merger of these two companies would create a powerful force in chip design and simulation, making the development process more efficient by reducing the chances of errors. However, this could also lead to one company dominating the entire chip design industry, making it harder for competitors without similar capabilities to compete.