The European Commission (EC) has approved Synopsys’ acquisition of Ansys, providing both companies sell off a number of software offerings.

In a statement, the EC said while the companies' activities are “largely complementary,” the acquisition would have reduced competition in the optics software, photonics software, and register-transfer-level power consumption analysis software.

As a result, Synopsys has agreed to sell its Optical Solutions Group to Keysight in addition to offloading a number of other optics and photonics software offerings, including Code V, LightTools, LucidShape, RSoft, and ImSym.

Meanwhile, Ansys will sell its register-transfer-level power consumption analysis software PowerArtist.

“In a world where complex chips need increasing amounts of power, innovative software tools, like those offered by both Synopsys and Ansys, help chip designers build chips that consume less power to the benefit of customers and the environment,” said Teresa Ribera, the EC’s executive vice president of clean, just, and competitive transition.

She added: “Thanks to the clear structural remedies offered by the parties, competition in these markets will be preserved and customers will continue to have access to innovative tools at competitive prices.”

Synopsys confirmed the $35bn cash-and-stock deal to acquire engineering and product design software firm Ansys in January 2024. The two companies have worked together since 2017, with president and CEO of Synopsys, Sassine Ghazi, saying at the time that the deal represented the “logical next step.”

However, the deal soon became the subject of antitrust investigations by the EC, the UK’s Competition and Markets Authority (CMA), and the Federal Trade Commission (FTC) in the US.

To date, only the European Commission has approved the deal. However, although the CMA launched an investigation in August 2024 that it has still yet to conclude, on January 8, 2025, the regulatory body announced it was considering the undertakings offered by the two companies in order to satisfy the EC.

“The parties have offered undertakings in lieu of a reference to the CMA, which involve the divestment of certain businesses. The CMA considers that there are reasonable grounds for believing that the undertakings offered by Synopsys and Ansys or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002,” the CMA said in a statement.

The FTC has yet to indicate whether the conditions both companies have agreed to will also satisfy its concerns.

In a statement to DCD, Synopsys said: "We are very pleased that the EC has approved our pro-competitive transaction in Phase 1. Today’s clearance decision follows the strong progress we have made toward gaining regulatory approval across various jurisdictions. Earlier this week, the UK CMA provisionally accepted our remedies toward a transaction approval in Phase 1.

"As previously communicated in our earnings call on December 4, 2024, the US HSR Act waiting period has expired, and we are working cooperatively with the FTC to conclude its investigation and review of our proposed remedies. China SAMR has officially accepted our filing, and its review is in process. In addition, we continue to work with the regulators in other relevant jurisdictions to conclude their reviews."

The company added that it continues to expect the transaction to close in the first half of 2025.