The approval is conditional on Synopsys selling its optics and photonics software arm and Ansys’ PowerArtist tool, which is used to analyze power consumption in digital chips. These divisions will require separate EU approval before the merger can proceed.
“In a world where complex chips require ever-increasing amounts of power, advanced software tools, such as those offered by Synopsys and Ansys, help chip designers create chips that are both user-friendly and environmentally friendly. use less electricity for the benefit of,” said Teresa Ribera, executive VP for clean, fair and competitive transition, in a statement. “We were concerned that this acquisition significantly harmed competition in certain global markets for design software for chips or other products.”
Addressed competition concerns.
Synopsys First announced the acquisition in January 2024, claiming that it wants to expand its reach from silicon to system design, combining its expertise in electronic design automation with Ansys simulation. Ansys accepted the deal to accelerate its development and offer more integrated solutions to its customers. Both had been working together for many years by then.
According to EC et al., Synopsys and Ansys compete in three key areas. UK Competition and Markets Authority. The first is a register transfer-level power consumption analysis, which estimates a chip’s power demand and usage. The other two are optics and photonics software, both used to design and model light-related products such as camera lenses, TV displays, car headlights, and lasers.
The EC was concerned that the merger would result in “higher combined market shares” and “higher levels of concentration” in these areas, resulting in fewer competitors and higher consumer prices.
To address this concern, the Commission is requiring the sale of Synopsys’ products CODE V, LightTools, LucidShape, RSoft, and ImSym, as well as Ansys’ PowerArtist. Synopsys has previously agreed to this. Sell all these modeling solutions. After the Ansys acquisition closed to another company.
The commission said in its press release that the “commitment is to ensure that there will be sufficient competition and choice in the global markets for the supply of optics, photonics, and register-transition-level power consumption analysis software.” fully address concerns.”
Ansys confirmed that it will be discontinuing its PowerArtist software on January 6, stating that “To Obtain Regulatory Approval for Proposed Acquisition of Synopsys.”
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The UK is ready to approve the merger, but the US and China are still investigating.
The CMA announced that it had completed its preliminary investigation into the Synopsys-Ansys merger on 20 December. It found that the merger had the potential to substantially reduce competition in the chip design and light simulation markets but could still approve it if both companies submitted acceptable mitigation.
In addition to reducing product choice in these areas, the CMA also suspects that the agreement will allow Synopsys and Ansys to limit the interoperability of their products. However, research has found that this factor is so important to their customers that they will switch providers if it is compromised, so they have no incentive to do so.
On January 8, the CMA announced that it was considering accepting measures proposed by Synopsys and Ansys to address competition concerns, including divestiture of certain businesses. He has until March 5 to make a final decision, but may extend the deadline to May 6. Synopsys said it had “already taken steps to address all concerns raised by the CMA”. statement.
See: The UK regulator is investigating Apple’s dominance of mobile browsers.
Meanwhile, Synopsys is actively cooperating with the Federal Trade Commission to review its equitable investigation and proposed remedies. The company says. Synopsys also claims that China’s State Administration for Market Regulation is reviewing the merger filing, and said that The Authority will request China-specific behavioral treatment..