FTC will Require Synopsys and ANSYS to Divest Assets to Resolve Merger Concerns

The Federal Trade Commission (FTC) announced on Wednesday that it will require Synopsys, Inc. (NASDAQ:SNPS) and ANSYS, Inc. (NASDAQ:ANSS) to divest certain assets to proceed with their $35 billion merger.

According to the commission, the proposed divestiture order will preserve competition across several software tool markets that are vital to semiconductors and light simulation devices. The FTC also added that the order will protect consumers from higher input prices for phones, cars, cameras, televisions, and other products.

Under a proposed consent order, Synopsys, Inc. (NASDAQ:SNPS) will divest its optical software tools and photonic software tools, whereas ANSYS, Inc. (NASDAQ:ANSS) is required to divest PowerArtist, a power consumption analysis tool. Both companies will sell their assets to Keysight Technologies, Inc.

The order also requires the two companies to complete the divestitures within 10 days of Synopsys, Inc. (NASDAQ:SNPS) closing the acquisition of ANSYS, Inc. (NASDAQ:ANSS). Both will also have to provide a limited amount of technological support and transition services to Keysight so that it can immediately compete with the merged company.

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Disclosure: None.