ANSYS, Inc.: Market and Corporate Update#
Shares of ANSS dropped -4.69% to $374.30 after the high-profile consolidation with Synopsys that closed at an announced $35.0 billion, a sequence that forces an immediate recalibration of ANSYS revenue forecast and near-term cash-flow expectations. The move shifts the company from a publicly traded standalone growth profile to an integration-led capital structure, changing the lens for investors and corporate counterparties.
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Market data from Monexa AI show [ANSS] traded at $374.30 (previous close $392.72) with a market capitalization near $32.91B, trailing EPS of $6.74, and a trailing P/E around 55.53x; intraday change was -4.69% (-4.69%) on the quote provided by Monexa AI (Monexa AI. These metrics frame the valuation that Synopsys paid and the earnings base now folded into a combined entity.
There is a noted data discrepancy to flag: public reporting and press releases from Synopsys indicate the acquisition closed on July 17, 2025, and describe governance and integration steps, while the Monexa AI feed used here still presents intraday market pricing and public-company financials for ANSYS. For deal terms and closing status we prioritize the corporate press release from Synopsys; for historical financial metrics and quarterly performance we use the Monexa AI dataset as the canonical financial source in this update (Synopsys press release, Monexa AI.
Key Developments#
Synopsys completed the acquisition of ANSYS under terms most commonly reported as $197.00 in cash plus 0.3450 shares of Synopsys common stock per ANSYS share, valuing the transaction at roughly $35.0 billion; alternate press reports recorded modest variations in the exchange ratio but the headline consideration is consistent with Synopsys communications (Synopsys press release.
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Regulatory clearance was the last material gating item; China’s SAMR granted conditional approval and other major jurisdictions cleared the deal after remedies and commitments were agreed, per contemporaneous reporting (South China Morning Post, Nasdaq. Those conditions included commitments around certain customer contracts and potential divestiture of narrowly overlapping product assets.
Post-close governance moves were immediate: former ANSYS CEO Ajei S. Gopal and other senior ANSYS executives were reported to join Synopsys governance and integration teams, signaling a retention-first approach to preserve product expertise and customer relationships during the integration phase (Synopsys press release.
Financial performance and key metrics#
ANSYS reported FY2024 revenue of $2.54B, gross profit of $2.26B, operating income of $717.89MM, and net income of $575.69MM, with a reported gross margin near 89%, operating margin 28.21%, and net margin 22.62% — figures drawn from the Monexa AI financial dataset (Monexa AI. These margins reflect the high gross-margin, recurring-revenue nature of simulation software.
Cash generation remained robust in FY2024: net cash provided by operating activities was $795.74MM and free cash flow was $751.70MM, while cash and short-term investments ended the period at roughly $1.50B and the company reported a net cash position (net debt - $605.6MM) — all from Monexa AI’s balance-sheet and cash-flow extracts (Monexa AI. The current ratio of 3.66x and modest reported total debt ($841.14MM) underline available liquidity as integration planning begins.
On valuation, Monexa AI lists a TTM P/E of ~55.22x, a price-to-sales of 12.74x, and an enterprise-value-to-EBITDA near 34.53x; forward P/E projections in the dataset decline to the low-30s in mid-decade consensus projections, reflecting expected earnings accretion and synergy realization assumptions (Monexa AI. Revenue growth and earnings growth metrics reported were +12.11% and +15.04%, respectively, versus prior-year comparatives.
ANSYS Historical Income Summary (FY2022–FY2024)#
| Year | Revenue | Operating Income | Net Income | Gross Margin | Operating Margin | Net Margin |
|---|---|---|---|---|---|---|
| 2024 | $2.54B | $717.89MM | $575.69MM | 89% | 28.21% | 22.62% |
| 2023 | $2.27B | $626.13MM | $500.41MM | 88.05% | 27.58% | 22.05% |
| 2022 | $2.07B | $592.66MM | $523.71MM | 87.87% | 28.69% | 25.35% |
Source: Monexa AI (Monexa AI.
Integration, competitive landscape and strategic impact#
Synopsys frames the acquisition as a "silicon-to-systems" expansion that materially enlarges the combined TAM; Synopsys public materials cite an initial TAM around $28B, with an addressable market positioned to compete across roughly $31B after integration — figures the acquirer uses to justify cross-selling and bundling economics (Synopsys press release.
The deal compresses a product stack for customers that historically stitched EDA and separate multiphysics simulation; industry commentary highlights that competitors such as CDNS and large PLM/simulation vendors will need to respond with partnerships, M&A, or deeper integrations to preserve parity in workflow coverage (Smartkarma, InsideHPC.
Product integration is planned in phases: Synopsys has publicly targeted initial fused capabilities in H1 2026, starting with advanced packaging and multi-die co-simulation and expanding into system-level validation thereafter; early customer pilots will be critical to convert technology integration into commercial cross-sell (Synopsys press release. Ansys’s prior integrations with visualization platforms such as NVIDIA Omniverse continue to be relevant for industry verticals like automotive and aerospace (Investing.com.
What happened to ANSS after the Synopsys acquisition?#
ANSYS moved from a standalone public company toward integration inside Synopsys; the immediate market reaction included a notable price pullback, index rebalancing for institutional holders, and a transition in governance and product roadmap leadership as the companies execute integration steps.
Market-level evidence shows [ANSS] trading at $374.30 with an intraday decline of -4.69% on the Monexa AI feed, even as Synopsys announced the close; index-level adjustments and passive-manager rebalances were reported in market coverage after the deal announcement (Monexa AI, Smartkarma.
Operationally, the acquisition converts ANSYS's high-margin, recurring revenue base into a strategic asset inside a larger EDA/IP company; execution risk now centers on timely product integration, customer migration, and realizing cross-sell opportunities without disrupting long-standing ANSYS customer relationships (Synopsys press release.
Analyst Estimates (Selected Years)#
| Year | Estimated Revenue | Estimated EPS |
|---|---|---|
| 2025 | $2.76B | 11.49 |
| 2026 | $3.03B | 12.76 |
| 2027 | $3.25B | 13.36 |
Source: Monexa AI analyst estimates (formatted) (Monexa AI.
- Key financial takeaways:
- Free cash flow remained strong in FY2024 at $751.70MM (Monexa AI).
- The company reported a net cash position (net debt - $605.6MM) at year-end FY2024 (Monexa AI).
- Trailing valuation metrics show a P/E near 55.22x and Price/Sales around 12.74x (Monexa AI).
- Recent organic growth metrics were +12.11% revenue growth and +15.04% net income growth year-over-year (Monexa AI).
What this means for investors#
The combination re-prioritizes value drivers: historical ANSYS standalone margin and cash-generation metrics (high gross margin, robust FCF) become inputs into Synopsys’s larger earnings and deleveraging plan. With FY2024 free cash flow of $751.7MM and a net cash position, the ANSYS business historically provided predictable cash conversion that supports integration spend and debt paydown objectives (Monexa AI, Synopsys press release.
Near-term investor focus should be on three measurable items during integration: (1) retention of key engineering and go-to-market talent, (2) delivery of the first integrated product tranche in H1 2026, and (3) evidence of early cross-sell in target verticals such as automotive and aerospace. Synopsys’s timeline and initial customer pilots will be the earliest objective signals of execution success (Synopsys press release.
For passive and index investors, the practical effects were immediate: delisting and index rebalancing forced turnover in funds tracking benchmarks, while active managers must now assess combined-company exposure and integration execution rather than pure-play simulation exposure (Nasdaq, Smartkarma.
Key takeaways and strategic implications#
ANSYS entered the Synopsys fold with strong standalone fundamentals — high gross margins, consistent revenue growth (+12.11%), and robust FCF ($751.7MM) — attributes that substantiate the premium paid and the deal rationale (Monexa AI, Synopsys press release.
The strategic prize is an integrated "silicon-to-systems" workflow and an expanded TAM (Synopsys cites $28B–$31B), but realization of that prize depends on product integration, customer adoption, and successful retention of ANSYS engineering capability through the transition (Synopsys press release.
Investors should track near-term execution signals — product releases in H1 2026, early cross-sell metrics, and quarterly cash-flow trends — while using Monexa AI historical financials as the baseline to measure post-close performance against the acquirer’s stated synergy and deleveraging objectives (Monexa AI.