We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ANSYS' (ANSS) Takeover by Synopsys Reportedly Under Scrutiny
Read MoreHide Full Article
ANSYS Inc’s (ANSS - Free Report) $35 billion deal to get acquired by Synopsys (SNPS - Free Report) is currently under regulatory scrutiny by the U.K. Competition and Markets Authority (“CMA”), according to a Reuters report.
Per the report, CMA is concerned that the acquisition could adversely impact competition in the market in Britain but has not yet launched a formal investigation.
In January 2024, Ansys inked a definitive agreement to be acquired by Synopsys at roughly $35 billion. Synopsys is a vendor of electronic design automation software for the semiconductor and electronics industries. It provides software and hardware that are used to develop electronic systems that incorporate chips.
The deal is anticipated to close in the first half of 2025. In May 2024, Ansys announced the approval of its shareholders for the proposed buyout. Per the agreement, Ansys shareholders will receive $197 in cash along with 0.3450 shares of Synopsys common stock for each ANSS share.
Ansys noted that about 98.7% of the stakeholders voted in favor of the acquisition, which represented almost 83.8% of the total outstanding shares of the company’s common stock. The $35 billion deal reflects an implied per-share consideration of $390.19 and represents a premium of about 29% over Ansys' closing stock price on Dec 21, 2023.
The deal is likely to reshape the landscape of the simulation software industry as ANSS and SNPS have a market capitalization of $27.2 billion and $80.4 billion, respectively.
In the last reported quarter, Ansys’ revenues jumped 20% year over year to $594.1 million. The top line surpassed the Zacks Consensus Estimate by 7.9%. The uptick was powered by two major multi-year contracts worth $210 million, won in the automotive and high-tech industries during the quarter in the Americas region. ACV grew 6.6% year over year (up 9.3% at cc) to $520.5 million.
Given the pending acquisition, Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook. It expects double-digit ACV and revenue growth in the second half of the year and expects 2024 ACV to grow in double digits.
ANSS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 3.3% in the past year compared with the sub-industry’s growth of 20.4%.
Image Source: Zacks Investment Research
Key Picks
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank of 1 (Strong Buy), supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%
CommScope Holding Company, Inc. (COMM - Free Report) , sporting a Zacks Rank of 1, is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. COMM has a long-term growth expectation of 18.15%.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
ANSYS' (ANSS) Takeover by Synopsys Reportedly Under Scrutiny
ANSYS Inc’s (ANSS - Free Report) $35 billion deal to get acquired by Synopsys (SNPS - Free Report) is currently under regulatory scrutiny by the U.K. Competition and Markets Authority (“CMA”), according to a Reuters report.
Per the report, CMA is concerned that the acquisition could adversely impact competition in the market in Britain but has not yet launched a formal investigation.
In January 2024, Ansys inked a definitive agreement to be acquired by Synopsys at roughly $35 billion. Synopsys is a vendor of electronic design automation software for the semiconductor and electronics industries. It provides software and hardware that are used to develop electronic systems that incorporate chips.
The deal is anticipated to close in the first half of 2025. In May 2024, Ansys announced the approval of its shareholders for the proposed buyout. Per the agreement, Ansys shareholders will receive $197 in cash along with 0.3450 shares of Synopsys common stock for each ANSS share.
Ansys noted that about 98.7% of the stakeholders voted in favor of the acquisition, which represented almost 83.8% of the total outstanding shares of the company’s common stock. The $35 billion deal reflects an implied per-share consideration of $390.19 and represents a premium of about 29% over Ansys' closing stock price on Dec 21, 2023.
The deal is likely to reshape the landscape of the simulation software industry as ANSS and SNPS have a market capitalization of $27.2 billion and $80.4 billion, respectively.
In the last reported quarter, Ansys’ revenues jumped 20% year over year to $594.1 million. The top line surpassed the Zacks Consensus Estimate by 7.9%. The uptick was powered by two major multi-year contracts worth $210 million, won in the automotive and high-tech industries during the quarter in the Americas region. ACV grew 6.6% year over year (up 9.3% at cc) to $520.5 million.
Given the pending acquisition, Ansys has suspended quarterly earnings conference calls and no longer provides a financial outlook. It expects double-digit ACV and revenue growth in the second half of the year and expects 2024 ACV to grow in double digits.
ANSS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 3.3% in the past year compared with the sub-industry’s growth of 20.4%.
Image Source: Zacks Investment Research
Key Picks
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank of 1 (Strong Buy), supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers. You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%
CommScope Holding Company, Inc. (COMM - Free Report) , sporting a Zacks Rank of 1, is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. COMM has a long-term growth expectation of 18.15%.