Synopsys headquarters. [Image: Courtesy of Synopsys]
On 19 September, Synopsys, a Silicon Valley–based electronic design automation (EDA) software specialist, announced a definitive agreement to sell its Optical Solutions Group (OSG) to Keysight Technologies, USA, for an undisclosed sum. OSG provides design tools and services to model light propagation for optical product simulations and visualizations, including product offerings like CODE V, LightTools and LucidShape.
According to a press release from Synopsys, the sale was “determined to be a necessary step” toward regulatory approval of its proposed acquisition of Ansys, USA, a developer and provider of simulation and analysis software for optical technologies. The Keysight sale is subject to customary closing conditions, including review by regulatory authorities and the successful closing of Synopsys’ acquisition of Ansys, which is expected in the first half of 2025.
A merger in the making
In January 2024, Synopsys entered into an agreement to acquire Ansys in a cash-and-stock deal valued at US$35 billion. In addition to combining their portfolios of optical design and testing software and tools, the companies hope to capitalize on the emerging “megatrend” of AI and intelligent and software-defined systems by offering customers an end-to-end solution, which Synopsys is calling a “silicon to systems” strategy. Once completed, the acquisition is expected to increase Synopsys’ total addressable market by 50%, to about US$28 billion—but regulatory approvals are still pending.
In an effort to obtain the approvals necessary to close the deal, Synopsys has agreed to sell OSG. The group currently offers software such as CODE V for design of imaging systems, LightTools for illumination design and LucidShape for automotive lighting design. In early September, the division announced the launch of ImSym, a prototyping platform for imaging systems, which is powered by Code V and LightTools.
Keysight says it expects the addition of OSG to broaden its existing software portfolio, building on its core expertise in RF and microwave EDA and physics-based computer-aided engineering capabilities.
“We are proud of Synopsys’ Optical Solutions Group, which has developed leading optical design tools backed by an expert team of optical engineers and scientists,” said Ravi Subramanian, general manager of the Systems Design Group at Synopsys. “Keysight will be an excellent future steward for this team, and customers worldwide will benefit from continued, strong competition in the development and delivery of optical design solutions.”
Keysight looks to build
Keysight provides electronic design and test solutions for the commercial communications, aerospace, defense and government, and electronic industrial markets. Its products range from oscilloscopes, spectrum analyzers, and generators and power supplies to circuit-design and simulation software. The firm says it expects the addition of OSG, which it calls a “complementary business,” to broaden its existing software portfolio, building on its core expertise in RF and microwave EDA and physics-based computer-aided engineering capabilities.
“Given the increasing complexity of electronics design, Keysight is excited to expand its software simulation portfolio with the acquisition of Synopsys’ Optical Solutions Group,” said Niels Faché, the vice President and General Manager, Keysight’s Design Engineering Software. “This acquisition will give us the capabilities to enable high-performance system use cases beyond electronics, including optics and photonics.”