Synopsys Inc. (SNPS) stock jumped early Tuesday after the company announced a 澳洲幸运5官方开奖结果体彩网:cash-and-stock acquisition of Ansys Inc. (ANSS) after a seven-year relationship in semiconductor design and simulatio🌟n between the two.

Ansys shareholders are set to receive $197 in cash and 0.345 share of Synopsys 澳洲幸运5官方开奖结果体彩网:common stock for each Ansys share they hold, resulting in an 澳洲幸运5官方开奖结果体彩网:enterprise value of around $35 billion. The deal represents a 35% premium over Ansys' 60-day average price for the period ending Dec. 21, 2023. Synopsys announced that it will fund $19 billion of the deal with cash on hand and a $16 billion debt offering.

Synopsys and Ansys have worked as partners for seven years, combining Synopsys's semiconductor electronic design automation (EDA) with Ansys' simulation and analysis tools. The Wall Street Journal reported three weeks ago that the two firms were in merger talks.

Synopsys said the combined company's total addressable market (TAM) will increase by 1.5 times to approximately $28 billion. Despite increasing its leverage to acquire Ansys, the company said that increased 澳洲幸运5官方开奖结果体彩网:free cash flow will enable "rapid de-leveraging" to less than two times debt within two years. Run-rate cost savings of $400 million🀅 are also exp🉐ected to be achieved by Year Three.

Synopsys President and Chief Executive Officer (CEO) Sassine Ghazi said the company was seeking to capitalize on the "megatrends of AI, silicon proliferation, and software-defined systems," creating a 澳洲幸运5官方开奖⭕结果体彩网:research🗹 & development (R&D) powerhouse across a wide range of industries.

Synopsys shares rose as much as 4.6% before giving up some of those gains, and were trading 1.5% higher in the late afternoon. Ansys stock fell about 5%.