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ANSYS (ANSS) to Acquire Diakopto to Enhance Software Offering

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ANSYS (ANSS - Free Report) announced the acquisition of Diakopto, a provider of Electronic Design Automation solutions for integrated circuit (IC) development. Diakopto focuses on addressing critical issues arising from layout parasitics, which have become increasingly complex in modern semiconductor designs employing advanced process node technologies.

The acquisition is expected to enable design engineers to "shift left," detecting interconnect parasitic problems early in the design cycle and minimizing costly iterations in the design cycle. The acquisition will enable ANSYS to leverage Diakopto's unique methodology and provide designers with actionable solutions to fix these above-mentioned issues. Apart from that, it will also help designers enhance IC performance and reliability as well as accelerate time to market, added ANSYS.

The acquisition will complement ANSYS’s existing solutions for engineers at every level, as Diakopto’s straightforward and “out-of-the-box” experience does not require considerable training or challenging installations or settings, added ANSYS.

ANSYS, Inc. Price and Consensus

ANSYS, Inc. Price and Consensus

ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote

The acquisition is expected to close in the second quarter of 2023, subject to customary closing conditions, and is not expected to have a material impact on ANSYS’s consolidated financial statements in 2023. With the acquisition, ANSYS is poised to further its leadership in engineering simulation software and provide customers with comprehensive solutions for IC development.

ANSS develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a broad spectrum of industries and academia.

In January, the company acquired Engineering Simulation and Scientific Software’s subsidiary, Rocky DEM. The acquisition of Rocky will allow ANSYS to offer its customers a broader range of engineering simulation software solutions by integrating Rocky's DEM tools and expertise.

Prior to that, the company announced that it was set to acquire orbital thermal analysis provider — Cullimore and Ring Technologies or C&R Technologies. The buyout will aid ANSS in bolstering its position in the simulation solutions market, especially in the lucrative aerospace as well as defense and private space industry verticals.

The company’s current acquisition of Diakopto complements the previous acquisitions of Rocky DEM and C&R Technologies to enhance its engineering simulation software. Though acquisitions have enabled the company to expand its product portfolio, its balance sheet has been negatively impacted by a high level of goodwill and intangible assets, which totaled approximately $4.47 billion or 66.8% of total assets as of Dec 31, 2022.

ANSS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 18.3% in the past year compared with the sub-industry’s rise of 16.7%.

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