SYNOPSYS INC Annual Report - How They Did This Year

This year has been a period of significant strategic moves for SYNOPSYS, as they've been busy reshaping their business through major acquisitions and divestitures. The company has made some big decisions that will impact its future.

Major Strategic Moves

SYNOPSYS has been actively adjusting its portfolio, making some big changes to what they own and what they're focusing on:

• Acquisition of Ansys Inc.: On July 17, 2025, SYNOPSYS completed the acquisition of Ansys Inc. SYNOPSYS now owns Ansys's common stock, along with its valuable developed technology, customer relationships, contractual rights, and trademarks. This move is likely to significantly expand SYNOPSYS's capabilities and market reach, especially in areas where Ansys is strong. Costs related to this acquisition were incurred in the 2024 fiscal year, including expenses for the business combination, share-based payments, and severance.
• Divestiture of Software Integrity Business: SYNOPSYS decided to sell off its Software Integrity Business. This part of the company was classified as "held for sale" as of September 30, 2024, and is being disposed of. This suggests SYNOPSYS is streamlining its operations and focusing on its core strengths.
• Regulatory Divestitures: In connection with the Ansys acquisition, SYNOPSYS also made regulatory divestitures on October 17, 2025. These are typically sales of certain assets or businesses required by regulators to ensure fair competition after a large merger.
• Investment in OpenLight Photonics Inc.: SYNOPSYS has been involved with OpenLight, a joint venture with Juniper Networks Inc., since an initial investment in April 2022. An event related to OpenLight Photonics Inc. occurred on December 23, 2024.
• Smaller Acquisitions: SYNOPSYS also made a series of smaller acquisitions in both the 2023 and 2024 fiscal years. These were spread across their Design Automation and Design IP segments, likely aimed at strengthening specific product lines or technologies.

These strategic actions indicate a company actively managing its portfolio to grow and adapt to market changes. The Ansys acquisition, in particular, is a game-changer that could redefine SYNOPSYS's position in the industry.

Key Takeaways:

SYNOPSYS has undergone a significant strategic transformation this year, marked by major acquisitions and divestitures. The acquisition of Ansys Inc. on July 17, 2025, is a pivotal event, expanding SYNOPSYS's technology and market reach, incurring related costs in fiscal year 2024. Concurrently, the company is streamlining its operations by divesting its Software Integrity Business and undertaking regulatory divestitures linked to the Ansys acquisition. SYNOPSYS also continued its involvement with OpenLight Photonics Inc. and made several smaller, targeted acquisitions across its Design Automation and Design IP segments in 2023 and 2024. These actions collectively demonstrate a proactive approach to portfolio management and strategic growth.