The UK’s antitrust authority has announced an investigation into Synopsys Inc.’s ambitious $34 billion takeover of software developer Ansys Inc., citing potential competition concerns surrounding the deal. The Competition and Markets Authority (CMA) revealed on Friday that it has opened a formal “phase one” merger probe, with a decision on whether to escalate to a more detailed investigation expected by December 20.
Synopsys, headquartered in Sunnyvale, California, specializes in software for designing semiconductors, while Ansys, based in Canonsburg, Pennsylvania, develops simulation software that helps engineers predict product performance in real-world conditions. The acquisition, announced in January, is intended to broaden Synopsys’ customer base and enhance its product offerings. Under the deal, Ansys shareholders would receive $197 in cash and 0.345 shares of Synopsys stock for each share they own.
A spokesperson for Synopsys expressed confidence in a positive outcome from the regulatory review processes, stating that the company still expects the transaction to close in the first half of 2025.
In recent years, the CMA has intensified its scrutiny of the tech sector, focusing on mergers involving artificial intelligence, cloud services, and semiconductor technology. With new digital market powers set to take effect later this year, the agency will have enhanced capabilities to monitor the activities of major tech firms.
As the investigation unfolds, the future of this major acquisition hangs in the balance, highlighting the growing regulatory challenges faced by big tech companies in an evolving market landscape.
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