The deal would bring together Synopsys' semiconductor electronic design automation (EDA) tools with Ansys' simulation and analysis portfolio. The EDA industry is already highly consolidated between Synopsys and Cadence, both of which have similar market capitalizations. DEAL COULD TRIGGER REGULATORS' SCRUTINY Though Anysys is not a direct competitor to either company, the deal could trigger regulatory scrutiny, especially key markets such as China, where approval times have become more difficult to predict. Ghazi and Ansys CEO Ajei Gopal told Reuters that the boards of both companies retained independent advisers to evaluate regulatory risks. "Based on many, many, many discussions, we believe that this deal should be done in the first half of '25," Ghazi said. However, "we gave ourselves 24 months with the priority and objective to get it done." Both Synopsys and Ansys have seen their share price jump significantly over the past 12 months, amid an artificial intelligence boom.