A week after it was first reported chip design software manufacturer Synopsys was in talks to acquire Ansys, the $35 billion cash-and-stock deal has been confirmed.

Ansys is an engineering and product design software firm headquartered in Pennsylvania.

The two companies have worked together since 2017 when they announced a partnership to integrate their technologies in order to assist overlapping customers. Consequently, president and CEO of Synopsys, Sassine Ghazi, said the deal represents the “logical next step” for the two companies.

"The megatrends of AI, silicon proliferation, and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity,” Ghazi added. “Bringing together Synopsys' industry-leading EDA (electronic design automation) 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.”

The deal is expected to close in the first half of 2025, subject to regulatory and shareholder approval.