Ansys, founded in 1970, is based in Canonsburg, Pennsylvania. The company develops simulation software that assists customers in such areas as sustainable transportation, advanced semiconductors, satellite systems, medical device development, and energy supply chains.
On the sustainability front, the company positions its digital engineering software as a potential solution to the energy trilemma, which involves the energy industry's need to:
Secure, affordable, and scalable energy to serve a growing population.
Deliver and convert energy so that it is consumed more efficiently.
Source new, cleaner energy to support growth, whilst replacing the widespread use of fossil fuels.
The Ansys partner ecosystem includes technology partners, channel partners, service providers, strategic partners, academic partners and systems integrators.
Business Performance and Quarterly Financial Results
For its Q3 of 2023, Ansys in November 2023 reported:
Revenue of $458.8 million, down 3% from Q3 of 2022.
net income of $55.5 million, down 42% from Q3 of 2022.
During a November 2023 earnings call with Wall Street analysts, Ansys CEO Ajei Gopal (pictured, top of page) blamed the financial declines on additional U.S. restrictions on sales to certain Chinese entities, as well as incremental approval processes and export restrictions on the sale of some products and services to entities located in China.
Synopsys Acquires Ansys: Executive Perspectives
In a prepared statement about the M&A deal, Sassine Ghazi, president and CEO of Synopsys, said: "The megatrends of AI, silicon proliferation and software-defined systems are requiring more compute performance and efficiency in the face of growing, systemic complexity. Bringing together Synopsys' industry-leading EDA 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. This is the logical next step for our successful, seven-year partnership with Ansys and I look forward to working closely with Ajei and the talented Ansys team to realize the benefits of this combination for our customers, shareholders and employees."
Added Aart de Geus, executive chair and founder of Synopsys: "Since inception 37 years ago, Synopsys has been an innovation pioneer, central to world-changing semiconductor advances in computation, networking, and mobility, and now enabling the new era of 'pervasive intelligence'. Joining forces with Ansys, a company we know well from our long-standing partnership, is the latest example of how Synopsys remains at the forefront. Our Board and management team carefully evaluated our top strategic options to lead and win in this fast-growing new wave of electronics and system design. The technology-broadening team-up with Ansys is an ideal, value-enhancing step for our company, our shareholders, and the innovative customers we serve."
Concluded Ajei Gopal, president and CEO of Ansys: "For more than 50 years, Ansys has enabled customers to design, develop and deliver cutting-edge products that are limited only by imagination. By joining forces with Synopsys, we will amplify our joint efforts to drive new levels of customer innovation. This transformative combination brings together each company's highly complementary capabilities to meet the evolving needs of today's engineers and give them unprecedented insight into the performance of their products. Ansys has a strong foundation, as demonstrated by preliminary annual contract value ("ACV") results for Q4 that are expected to exceed the high end of our guidance, and I am confident that building on our partnership with Synopsys will position us well to deliver even greater value for our customers, partners and shareholders. The combined company will accelerate the development of our joint portfolio and deliver an increased level of innovation, which will benefit Ansys' traditional customers. I am proud of all that our employees do every day to make Ansys and our customers successful and look forward to the combined company achieving even greater heights in this next chapter."
Alas, non of the executives mentioned sustainability opportunities -- particularly sustainable transportation -- in the M&A announcement.
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