Synopsys gets $16 billion bridge loan commitment for Ansys purchase

By Sara Rosenberg

New York, Jan. 16 – Synopsys, Inc. has received a commitment for up to $16 billion of senior bridge term loans to support its acquisition of Ansys, Inc., according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

JPMorgan Chase Bank, BofA Securities Inc. and HSBC Securities (USA) Inc. provided the bridge commitment.

Under the agreement, Ansys shareholders will receive $197.00 in cash and 0.345 shares of Synopsys common stock for each Ansys share, representing an enterprise value of about $35 billion based on the closing price of Synopsys common stock on Dec. 21.

The combined company is expected to generate substantial and sustained free cash flow, which will enable rapid deleveraging to less than 2x debt to adjusted EBITDA within two years post-closing, with a long-term leverage target of less than 1x.

Synopsys expects to maintain investment-grade credit ratings given its strong cash flow generation and commitment to rapidly delever.

Closing is expected in the first half of 2025, subject to approval by Ansys shareholders, the receipt of required regulatory approvals and other customary conditions.

Synopsys is a Sunnyvale, Calif.-based developer of electronic products and software applications. Ansys is a Canonsburg, Pa.-based software company.

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