The Federal Trade Commission (FTC) has issued an order requiring Synopsys Inc. and Ansys Inc. to divest key software assets as a condition for proceeding with their proposed $35 billion merger. This move comes as part of the agency’s efforts to protect competition and prevent higher costs across critical technology markets.
The FTC order mandates that Synopsys divest its optical software tools and photonic software tools, while Ansys must divest its PowerArtist tool, a product used for analyzing and optimizing power consumption in digital chips. The assets will be acquired by Keysight Technologies Inc., ensuring continued competition in the affected markets.
“The FTC’s action today ensures that this high-value merger will not come at the expense of consumers and innovation,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “By requiring these divestitures, we are preserving access to essential software tools that support the development of semiconductors, fiber optic technologies, LED screens, and other vital components of modern electronics.”
The divestitures address concerns in three specific markets:
