FTC Conditionally Approves $35 Billion Synopsys-Ansys Merger

The U.S. Federal Trade Commission (FTC) has conditionally approved the $35 billion merger between Synopsys and Ansys, two leading software developers in the semiconductor and engineering sectors. This approval, announced on May 28, 2025, is contingent upon the divestiture of specific assets to address antitrust concerns, particularly in markets for software tools essential for semiconductor and light simulation device design.

This decision marks a significant shift in the FTC's approach to antitrust enforcement under Chairman Andrew Ferguson, moving away from the stringent policies of the previous administration. Ferguson, who assumed the role in January 2025, has indicated a willingness to consider divestitures to mitigate antitrust concerns while preserving the benefits of mergers. He stated, "We are going to enforce these laws vigorously and aggressively. If the commission believes that a merger violates the law, you're going to see us in court, and if we think it doesn't, we're going to get out of the way."

Prior to the FTC's approval, the European Commission granted conditional approval in January 2025, requiring similar divestitures to maintain competition in key software markets. The UK's Competition and Markets Authority also cleared the deal in March 2025 after accepting proposed remedies. South Korea's Fair Trade Commission followed suit in March, approving the merger on the condition that the companies divest overlapping business units within six months of integration.

As of June 11, 2025, Synopsys' stock (SNPS) is trading at $501.67, down 0.54% from the previous close, while Ansys' stock (ANSS) is at $348.17, up 0.62%.

The conditional approval of the Synopsys-Ansys merger signifies a potential stabilization in merger and acquisition activity, offering more clarity and predictability for companies pursuing mergers. This approach may encourage innovation through capital formation and conserve regulatory resources.

The Synopsys-Ansys merger is one of the largest in the technology sector since chipmaker Broadcom's takeover of software maker VMware in 2023.

In summary, the FTC's conditional approval of the Synopsys-Ansys merger reflects a more balanced and pragmatic approach to antitrust enforcement under Chairman Andrew Ferguson, balancing competition concerns with the benefits of mergers.