Synopsys-Ansys Merger Cleared by China

by MarketNewsData

SAMR Clearance Removes Final Regulatory Barrier as Synopsys Eyes Long-Term Growth Boost

China’s State Administration for Market Regulation (SAMR) has formally approved Synopsys’ $35 billion acquisition of Ansys, granting conditional clearance on July 12, 2025. This final approval clears the path for the deal to close in the coming weeks, following prior regulatory clearances in the U.S., EU, UK, Japan, and South Korea.

✅ What China Approved

SAMR’s approval is conditional, with key behavioral remedies aimed at preserving fair competition and ensuring continued access for Chinese firms to critical design and simulation tools. The conditions require Synopsys to:

  • Avoid forced bundling of Synopsys and Ansys software;
  • Maintain interoperability with third-party EDA and simulation tools;
  • Provide non-discriminatory licensing terms;
  • Submit regular compliance reports to Chinese authorities.

These safeguards are designed to limit market dominance risks and ensure local firms can still access essential tools for chip design and engineering.

📊 Future Revenue Impact: What the Merger Means for Synopsys

The combined company is expected to surpass $10 billion in annual revenue, driven by immediate scale and long-term synergy benefits. Here’s a breakdown of the projected financial impact:

📈 Revenue Baseline

  • Synopsys FY2025E: $6.7B–$6.8B
  • Ansys FY2024E: ~$2.0B
  • Combined Run Rate: Over $10B

🔁 Synergy Potential (Company Guidance)

  • Cost Synergies: $400M annually by Year 3
  • Revenue Synergies: $400M annually by Year 4, potentially over $1B longer-term
  • Non-GAAP EPS Accretion: Expected by Year 2 post-close

Synopsys plans to cross-sell Ansys simulation tools into its electronics design base, particularly in AI, automotive, aerospace, and high-performance computing sectors. The merger also doubles Synopsys’ total addressable market to more than $28 billion, spanning EDA, simulation, and systems design.

🧠 Strategic Rationale

The deal unifies Synopsys’ leadership in electronic design automation (EDA) with Ansys’ strength in physics-based simulation, enabling a complete “Silicon to Systems” design platform. Customers in advanced chip design, autonomous vehicles, and digital twins are expected to benefit from integrated workflows — and Synopsys gains a powerful moat through deeper ecosystem lock-in.

🔍 What to Watch

  • Deal Closing: Now imminent, pending final integration steps.
  • Compliance Monitoring: SAMR and other global regulators will oversee Synopsys’ adherence to competitive safeguards.
  • Financial Updates: Investors will watch for updated guidance incorporating Ansys contributions and synergy progress.

🧾 Bottom Line

China’s approval removes the final obstacle to Synopsys’ $35B acquisition of Ansys — a deal that transforms the company into a global design software leader with over $10B in revenue potential and a much broader customer base. While integration and compliance will be closely watched, the merger sets Synopsys up for accelerated growth and long-term dominance in the chip and system design landscape.

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