The Federal Trade Commission (FTC) has mandated that Synopsys, Inc. and Ansys, Inc. divest certain assets to address antitrust concerns related to their proposed $35 billion merger. This decision aims to maintain competition in several software tool markets essential for semiconductor and light simulation device design.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, stated, “The FTC’s action today protects Americans from higher costs for the countless everyday products that use computer chips, LED screens, fiber optic cables, and many other high-tech components.” He added that the divestiture order ensures competition thrives across critical software markets.
Synopsys specializes in Electronic Design Automation software for semiconductors, while Ansys provides Simulation & Analysis software used by engineers for product testing. The proposed consent order requires Synopsys to divest its optical and photonic software tools used in designing devices like LED screens and fiber optic cables. Ansys will also divest a power consumption analysis tool known as PowerArtist.
Both companies are set to transfer these assets to Keysight Technologies, Inc., under the terms of the proposed consent order. This agreement resolves FTC allegations that the merger would be anticompetitive in three specific markets: optical software tools, photonic software tools for photonic devices design and simulation, and RTL power consumption analysis tools.
To ensure compliance with the order:
- Synopsys and Ansys must complete asset divestitures within 10 days post-acquisition.
- They must provide limited transition services to enable Keysight's immediate market competition.
- A monitor will oversee implementation requirements; a trustee may be appointed if necessary.
International cooperation played a role in analyzing this acquisition's potential impacts with agencies from the European Union, United Kingdom, Japan, and South Korea involved.
The FTC's decision was unanimous with a 3-0 vote from Chairman Andrew N. Ferguson along with Commissioners Melissa Holyoak and Mark R. Meador. The public is invited to comment on this proposal within 30 days through Regulations.gov.
An administrative complaint by the Commission indicates "reason to believe" legal violations have occurred or are likely without intervention deemed in public interest. Once finalized, a consent order carries legal weight concerning future actions.
The Federal Trade Commission remains committed to promoting competition while protecting consumer interests without imposing monetary demands or threats. More information about consumer benefits from competition or filing antitrust complaints can be found on their website alongside news updates via social media channels.
