SNPS - Synopsys: Selling On The Cheap Ahead Of The Ansys Deal

2024-05-17 04:09:23 ET

Summary

• Synopsys is selling its software integrity business for $2.1 billion to raise cash for its $35 billion deal to acquire Ansys.
• The divestment of the software integrity business looks cheap compared to SNPS's valuation.
• Regulatory hurdles and uncertainty surrounding antitrust approvals for the Ansys deal add to the cautious outlook for the Company.

In February of this year, I called Synopsys ( SNPS ) a stronger AI play following the announced purchase of Ansys ( ANSS ) . The Electronic Design Automation market leader announced a huge $35 billion deal to expand the business....

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