Synopsys prepares about $10 billion bond sale to finance Ansys deal, Bloomberg News reports

(Reuters) - Synopsys (NASDAQ:SNPS) is looking to sell about $10 billion of bonds as soon as next week to help finance its acquisition of software maker Ansys (NASDAQ:ANSS), Bloomberg News reported on Friday, citing people with knowledge of the matter.

The company asked Bank of America, HSBC Holdings (NYSE:HSBC) and JPMorgan Chase (NYSE:JPM) to organise a series of fixed-income investor calls on Friday, the report stated, citing a different source.

Synopsys, JPMorgan and HSBC did not immediately respond to Reuters’ requests for comment, while Bank of America declined to comment.

Synopsys received approval for its $35 billion deal with Ansys in the European Union (EU) last month.

To alleviate competition concerns arising from the deal, the EU said that both companies have agreed to divest Synopsys’ optics and photonics software and Ansys’ PowerArtist software.

The company has begun discussions with Chinese regulators about the deal, Synopsys Chief Executive Sassine Ghazi told Reuters on Wednesday.

The acquisition, announced in January last year, would see Synopsys take over Ansys, a maker of software used in the creation of a diverse range of products, including airplanes and tennis rackets used by players such as Novak Djokovic.

The potential bond sale comes after Synopsys issued a robust revenue forecast for the second quarter on Wednesday, on the back of growing demand for its software used in designing chips.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Should you invest $2,000 in ANSS right now?

With ANSS making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed ANSS alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including ANSS, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is ANSS poised for similar growth? Don't miss the opportunity to find out.

Reveal Undervalued Stocks Now