On the morning of January 17th, Xinsi Technology introduced to a reporter from the Daily Economic News that Xinsi Technology (NASDAQ stock code: SNPS) and Ansys (NASDAQ stock code: ANSS) have recently announced that they have reached a final agreement on the acquisition of Ansys by Xinsi Technology.
According to the terms of the agreement, Ansys shareholders will receive $197.00 in cash per share of Ansys stock and 0.3450 shares of Xinsi Technology common stock. Based on the closing price of Xinsi Technology common stock on December 21, 2023, the total value of the acquisition is approximately $35 billion.
New giants will emerge
Xinsi Technology is one of the world's three major EDA (Electronic Design Automation) manufacturers, and Ansys is a global leader in simulation analysis technology.
According to the official WeChat account of Xinsi Technology, it is the world's top EDA and IP company, as well as a global leader in information security and software quality. Xinsi Technology uses the "root technology" of the chip industry to promote the development of core technologies in cutting-edge applications such as AI, 5G, high-performance computing, and intelligent vehicles.
According to an article published on Ansys China's official WeChat account in October 2022, Ansys has been deeply involved in the simulation field for more than 50 years. Since the 1990s, Ansys's structural simulation tools have been used for packaging structure strength, vibration, and thermal simulation, opening up its application in the field of integrated circuits.
In 2006, Ansys acquired Fluent and acquired the electronic cooling simulation tool Icepak; In 2008, with the acquisition of Ansoft, Ansys established the industry's most powerful and complete electromagnetic field simulation system, achieving comprehensive simulation of signal integrity, power supply integrity, parasitic parameter extraction, and time-domain and frequency-domain circuit simulation from packaging to the system; In 2011, the acquisition of Apache further included a verification platform for complex IC power supply integrity and reliability simulation under its umbrella, expanding the Ansys simulation field to the chip field and fully entering the EDA field, providing the industry's unique collaborative design and simulation platform for electrical, thermal, and structural aspects from chips to packaging and systems.
In 2015, after completing the acquisition and subsequent development of Gear Design System, Ansys established the industry's first EDA big data intelligent computing platform, Seascape, and updated various gold standard software products such as RedHawk, Totem, Pathfinder, etc. for multiple physical fields to the most advanced software architecture and complete intelligence, in order to solve key verification problems in chip development and perform scalable elastic computing for various verification environments.
This article shows that the former three giants of EDA have become the current "four giants", namely the four major EDA manufacturers, which were originally the three giants of Xinsi Technology, Cadence and Mentor (now acquired by Siemens), and simulation software giant Ansys.
At present, there is also a saying that the four major EDA manufacturers collectively refer to "MACS", which takes the initials of Mentor, Ansys, Cadence, and Synopsys (New Thinking Technology).
Why make a big acquisition?
For this acquisition, Xinsi Technology believes that the complexity of today's intelligent systems requires semiconductor design to be combined with simulation and analysis to ensure that interconnected intelligent systems operate normally in actual environments. Combining the EDA technology of Xinsi Technology with Ansys' mature simulation and analysis capabilities can provide comprehensive, powerful, and system centered innovative methods for both clients.
Sassine Ghazi, Global President and CEO of Xinsi Technology, stated: Faced with the increasing complexity of systems, the development of mainstream trends such as artificial intelligence, the surge in chip demand, and software defined systems requires higher computational performance and efficiency. The strong combination of Xinsi Technology's globally leading EDA solution 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 achieve development capabilities Maximizing force. "
Ajei Gopal, President and CEO of Ansys, stated: For over 50 years, Ansys has been committed to assisting clients in breaking through their imagination, designing, developing, and delivering the most advanced products. By partnering with the strong forces of Xinsi Technology, we will double our efforts to drive client 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
On the morning of January 17th, "As the trend of chip systematization intensifies, the importance of simulation software is becoming increasingly prominent. For example, the current popular application of Chiplet technology requires more simulation software intervention. Therefore, industrial simulation software will move from whole machine design to chip level applications. As a global leader in EDA, Xinsi Technology has gained insight into this trend and business opportunities and made a decisive move," said Zhang Guobin, CEO of Electronic Innovation Network, in an interview with the Daily Economic News
The acquisition of Ansys by Xinsi Technology may bring pressure to the other two major EDA manufacturers. Zhang Guobin said, "With the launch of Xinsi Technology, other EDA giants will definitely follow suit. In the future, people will increasingly pay attention to simulation software, and there will also be a series of acquisitions in the industrial simulation software field."