By Edith Hancock


California chip design software giant Synopsys has struck a deal with electronics company Keysight as it works to get its planned $35 billion acquisition of Ansys approved by the European Union's competition regulator.

Synopsys said on Monday that Keysight has agreed to buy Ansys' PowerArtist software tool, and that the transaction is still subject to review by regulatory authorities. The company said both groups determined that selling PowerArtist, a software tool that helps semiconductor companies gauge their power usage during the design process, was necessary to gain regulatory approval for their merger.

"We are proud of the role PowerArtist has played to advance low power innovation across semiconductor design applications," said John Lee, vice president and general manager of Ansys' electronics semiconductor and optics business unit. Keysight Design Engineering Software Vice President and General Manager Niels Fanche said that the purchase will help the company build out its existing portfolio and strengthen its offering in digital systems.

The European Commission had set a Jan. 10 deadline to decide on whether to approve the deal or move to an in-depth investigation, a process that can make it more difficult for companies to close transactions. The groups still expect to close their deal in the first half of 2025.

Synopsys agreed to buy Ansys in January 2024 in a bid to create a new software giant that extends Synopsys' reach in simulation software for designers of micro chips, cars and airplanes.

The deal is also being looked at by the U.K. Competition and Markets Authority, which signalled last month it might clear the transaction if the companies offer up remedies that address its own concerns.


Write to Edith Hancock at edith.hancock@wsj.com


(END) Dow Jones Newswires

01-06-25 1738ET