The Federal Trade Commission has mandated that Synopsys and Ansys divest specific assets to address competition concerns related to their proposed $35 billion merger. The divestitures are aimed at preserving competition in key software markets critical to semiconductor and optical device design. According to Daniel Guarnera, Director of the FTC’s Bureau of Competition, “The FTC’s action today protects Americans from higher costs for the countless everyday products that use computer chips, LED screens, fiber optic cables, and many other high-tech components.” These tools are used to design components found in common consumer goods such as smartphones, LED displays, fiber optic systems, and more. To resolve these concerns, both companies will divest their respective assets to Keysight Technologies, ensuring continued market competition.
Under the proposed consent order, Synopsys must divest its optical and photonic simulation software, while Ansys will divest PowerArtist, a power optimization tool for early-stage chip design. The order requires that the divestitures be completed within 10 days of the deal’s closure and includes provisions for transitional support to Keysight. The FTC has also appointed a monitor and established terms for a divestiture trustee if necessary. The consent order follows cooperation with regulatory authorities in the EU, UK, Japan, and South Korea and was unanimously approved by the Commission.
