Last year was probably one of the most interesting one for 3D printing software mergers and acquisitions. Between Shapeways that acquired a majority stake in 3D file-sharing platform Thangs, and 3D Systems which agreed to sell its Geomagic reverse-engineering software to Hexagon’s Manufacturing Intelligence Division, some acquisitions went beyond the AM software market to encompass other design and engineering solutions. One of the biggest acquisitions announced in this area was Siemens’ agreement to acquire Altair Engineering Inc., a 3D design and simulation software developer (worth approximately $10 billion) as it will reinforce the German tech multinational’s market position and create the “world’s most complete AI-powered design and simulation portfolio.”
Apart from this agreement, Synopsys’ agreement to acquire Ansys is reportedly the biggest one in the software market and between two publicly-traded companies: this enterprise value was worth approximately $35 billion based on the closing price of Synopsys common stock on December 21, 2023.
Given the fact that these companies are active in several Member States and reach certain turnover thresholds, this particular merger needed to be examined at European level by the European Commission.
According to the European Commission, such an examination would allow the companies involved to obtain clearance for their mergers in one go. The rule states that if it is considered that a merger will not harm competition, it is approved unconditionally. Conversely, if a merger would harm competition, suitable commitments will be proposed by the merging firms to remove the harm.
In the case of Synopsys and Ansys, the Commission investigated the impact of the transaction in the global markets for the supply of: (i) optics software; (ii) photonics software; and (iii) electronic design automation (‘EDA’) software tools used for the design of chips, where Synopsys and Ansys’s activities actually or potentially overlap.
The Commission also assessed the merged entity’s potential ability and incentive to offer bundles or to hamper the interoperability of: (i) different EDA software tools; or (ii) EDA software tools and semiconductor intellectual property (‘IP’) solutions for system-on-chip designs, of which Synopsys is a leading provider.
The Commission found that the transaction would have resulted in high combined market shares as well as high concentration levels in the above markets. The Commission also found that, after the merger, there would not be enough alternative competitors to exert sufficient competitive pressure on the merged entity. The transaction, as notified, would have led to higher prices and less choice for customers.
To address the Commission’s competition concerns, the parties offered to divest to a suitable purchaser the entire overlap in terms of the merging parties’ respective activities in the markets where the Commission identified significant competition concerns, namely:
- Synopsys’ optics and photonics software, including Code V, LightTools, LucidShape, RSoft and ImSym.
- Ansys’ register-transfer-level power consumption analysis software PowerArtist.
The commitments fully address the competition concerns by ensuring that there will be sufficient competition and choice in the global markets for the supply of optics, photonics and register-transfer-level power consumption analysis software.
Featured image: Synopsys. Remember, you can post free-of-charge job opportunities in the AM Industry on 3D ADEPT Media or look for a job via our job board. Make sure to follow us on our social networks and subscribe to our weekly newsletter: Facebook, Twitter, LinkedIn & Instagram! If you want to be featured in the next issue of our digital magazine or if you hear a story that needs to be heard, make sure to send it to contact@3dadept.com.
