Background

In January 2024, Synopsys announced $SNPS (-0,06 %) announced that it would acquire Ansys $ANSS for 35 billion US dollars. The deal means that each Ansys shareholder will receive 197 US dollars and 0.345 Synopsys shares for each Ansys share held. After I became aware of this acquisition, I wrote a post on April 29, 2025 in which I pointed out the percentage difference between the then current price of Ansys stock and the sum of the price of 0.345 shares of Synopsys and the $197. That was about a 10% difference at the time. I joined Ansys as an experiment.

Today it was announced that the Chinese market regulator has granted the decisive approval for the acquisition under certain conditions. According to Reuters Synopsys and Ansys plan to finalize the acquisition on Thursday.

finance.yahoo.com please click on image for full view

Since the end of April, Ansys shares (blue) have significantly outperformed the MSCI World (purple).

What I have learned:

• I didn't have the expertise to assess whether the takeover would take place as planned.

• Not a simple, safe trade: The Ansys and Synopsys share price was very volatile.

• I underestimated the US-China risk in relation to the crucial approval of the Chinese competition authority.

• Timing is crucial: If I had entered in January, I would not have made any profits.

Disclaimer

This is not investment advice. These are personal assessments that cannot replace professional advice. You can find the detailed and complete stock analysis on my free substack (link in profile).

Conclusion

To summarize, I had more luck than sense. The composition of the deal was also relatively opaque and complicated. Personally, I will refrain from such short-term trades from now on.

$SNPS (-0,06 %) Synopsys announced in January 2024 $ANSS to acquire Ansys for 35 billion. Under the terms of the deal, each Ansys shareholder will receive $197 and 0.345 Synopsys shares per share. The current share price of Ansys is $302.74 and of Synopsys $413.32.

At the current price, this would mean: $197 + 0.345*$413.32 = $339.6 per Ansys share.

However, the current Ansys share price is $302.74. That is about 12% difference. The European and British competition authorities have already approved the deal. The takeover is planned for the first half of 2025.

How certain is it that the takeover will take place and that Synopsys will not pull out? Wouldn't it be smart to trade it? What do you think?

I would like to refer once again to the acquisition of

$ANSS by $SNPS (-0,06 %)

once again.

And I think that there is still enormous potential here.

What is your opinion on this?

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Hello everyone,

I am more than satisfied with the performance of my portfolio this year!

I was in the discovery phase for a long time as far as my strategy is concerned and I have certainly lost some returns due to some back and forth. The back and forth was mainly due to a steady increase in knowledge. I have learned a lot this year, particularly in the area of share valuation (DCF, fair value, trading comps) (and of course some gambling). With this additional knowledge, I also had to rethink some positions that I would certainly not have included in my portfolio today.

I am pretty sure that my approach of buying absolute quality companies at good prices will work out in the future.

That's why I want to focus my portfolio even more in the future!

For new additions to the portfolio I have $SNPS (-0,06 %)
$CDNS (+0,59 %)
$ANSS
$CPRT (+0,33 %)
$CTAS (+0,3 %) and $RACE (+3,57 %) at the top of my watch list. If something happens here that drives the valuation down significantly, I would like to buy it.

What are your top quality companies?

LG