FTC Finalizes Divestiture Order in Synopsys and Ansys Merger

The Federal Trade Commission (FTC) has issued a final consent order requiring Synopsys, an electronic design automation company, and Ansys, a developer of engineering simulation software, to divest certain assets to address antitrust concerns over their planned $35 billion merger. The FTC stated that the final order preserves competition in several key software markets that support semiconductor and light simulation design. 

According to the Commission, the divestitures are necessary to prevent higher prices and reduced innovation in tools used for designing next-generation semiconductors. Under the order, Synopsys must divest its optical and photonic software tools, while Ansys is required to divest its PowerArtist power consumption analysis tool. These assets will be transferred to Keysight Technologies.

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The FTC alleged that, without these divestitures, the merger would have eliminated direct competition between Synopsys and Ansys in three crucial software tool markets, ultimately harming device manufacturers and consumers. After the public comment period, the Commission unanimously approved the final order with a 3-0 vote. The FTC reaffirmed its mission to promote competition and protect consumers, stating that this action ensures continued innovation and fair pricing in the semiconductor and simulation software sectors.

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