A Pittsburgh-area simulation software firm will be acquired in a huge $35B deal

A Canonsburg-based simulation software firm that employs thousands of local residents will be acquired by another publicly traded company in a huge deal worth $35 billion.

Ansys, which has operated in the region for over half a century and trades on the Nasdaq as ANSS, will be absorbed by the Sunnyvale, California-based electronic design automation (EDA) company Synopsys, which trades as SNPS. The cash and stock deal is expected to close in the first half of 2025.

“The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity,” Synopsys President and CEO Sassine Ghazi said in a press statement. “Bringing together Synopsys’ industry-leading EDA solutions with Ansys’ world-class simulation and analysis capabilities will enable us to deliver a holistic, powerful and seamlessly integrated silicon to systems approach to innovation to help maximize the capabilities of technology R&D teams across a broad range of industries.”

One of the main markets for simulation software, for example, is in building cars  — it’s a critical part of the process even for classic vehicles that aren’t driverless or electric. Ansys helps auto manufacturers streamline process changes to help speed their go-to-market timelines.

The 54-year-old Ansys is well known in the Pittsburgh region, and in recent years has established partnerships with a number of local tech companies.

Most recently it announced work with Astrobotic, which began its journey to the moon via Peregrine Mission One on Jan. 8. The North Side-based space tech company used Ansys’ virtual design and mission planning to calculate the chances of its mission’s success.

Astrobotic leveraged the Ansys’ tools to design 20% of the Peregrine Lunar Lander, per a press release, as well as evaluate and optimize the spacecraft’s performance using Ansys Mechanical. The company also used Ansys’ Thermal Desktop to examine the factors for optimal launch opportunities as the Peregrine flies farther from Earth.

In fall 2023, Ansys partnered with Carnegie Mellon University when the two named Dr. Rebecca Taylor as the Ansys Career Development Chair in Engineering. Taylor, an associate professor in mechanical engineering at the university, is tasked with teaching CMU students mechanical engineering concepts using Ansys’ structural simulation technology, and helping them to integrate Ansys solutions into research projects and curricula.

Ansys also represented the region at CES 2024.

The company has made a few of its own acquisitions. Its purchase of the German DYNAmore, which develops simulation tools for the automotive industry, closed in January 2023, and it brought on California-founded Diakopto to speed integrated circuit development for semiconductors that spring.

Ansys declined to answer Technical.ly’s questions about how local employees will be affected by change, and whether the company will continue to partner with other Pittsburgh institutions.