On January 16th, local time, Xinsi Technology and Ansys announced that they have reached a final agreement on the acquisition of Ansys by Xinsi Technology. According to the agreement, Ansys shareholders will receive $197 in cash per Ansys share and 0.345 shares of Xinsi Technology common stock. Based on the closing price of Xinsi Technology's common stock on December 21, 2023, the total value of the acquisition is approximately $35 billion. The transaction is expected to be completed in the first half of 2025, but requires approval from Ansys shareholders, necessary regulatory approvals, and other customary transaction conditions.
Sassine Ghazi, Global President and CEO of Xinsi Technology, said, "The increasing complexity of systems, the surge in demand for artificial intelligence, chips, and the development of software defined systems, among other mainstream trends, require higher computational performance and efficiency. The strong combination of Xinsi Technology's globally leading EDA solutions and Ansys' advanced simulation analysis technology will enable us to provide a comprehensive, powerful, and seamless integration of innovative paradigms from chips to systems, helping technology research and development teams in various industries to maximize their development capabilities. This is also the next logical step after seven years of successful cooperation with Ansys."
Aart de Geus, Executive Chairman and Founder of Xinsi Technology, said, "Since its establishment 37 years ago, Xinsi Technology has always been a global innovation leader, at the core of the evolution of semiconductor technologies such as computing, networking, and mobile that have changed the world. Accelerating the arrival of a new era driving 'Pervasive Intelligence', the strong collaboration between the two sides is another important milestone for Xinsi Technology to continue to become a global leader."
Ajei Gopal, President and CEO of Ansys, said, "For over 50 years, Ansys has been committed to helping customers break through their imagination, design, develop, and deliver the most advanced products. By partnering with the strong forces of New Thinking Technology, we will double our efforts to drive customer innovation to a higher level. This transformative alliance will integrate the highly complementary capabilities of the two companies to meet the constantly changing needs of developers and provide them with unprecedented insights into product performance."
It is reported that Xinsi Technology's globally leading chip electronic design automation (EDA) and Ansys' extensive simulation analysis product portfolio will work together to create a global leader in the field of chip to system design solutions. This merger will further strengthen the "chip to system" development strategy of Xinsi Technology in core EDA fields and highly promising emerging growth areas such as automotive, aerospace, and industrial intelligent manufacturing. Ansys has a mature business layout and successful market experience in these areas.
In addition, the merger with Ansys is expected to strengthen the financial strength of Xinsi Technology. Under non GAAP accounting standards, it is expected that after the merger, the operating profit margin of Xinsi Technology will increase by approximately 125 basis points, and the leveraged free cash flow profit margin will increase by approximately 75 basis points in the first year after the transaction is completed. It is expected to increase earnings per share in the second full year after the transaction is completed and significantly increase thereafter.