Shares of Ansys Inc. experienced a significant surge of 19% on Friday following reports that the company is engaged in discussions to be acquired by Synopsys Inc., potentially resulting in the formation of a dominant design-software entity.

This potential mega-merger, scheduled for the beginning of 2024, comes at a time when the Federal Trade Commission is taking measures to regulate such transactions. Although talks are ongoing, it is still possible for another party to emerge as a potential suitor for Ansys, according to sources cited in a Wall Street Journal report.

Ansys, with a market value of approximately $26.3 billion, specializes in software that accurately predicts the performance of products in sectors such as aerospace, healthcare, and automotive. Insiders believe that an agreement could be reached early next year. In 2022, Ansys reported revenue amounting to $2.1 billion.

Synopsys, with a market value of $85.1 billion, produces software utilized by engineers for the design and testing of silicon chips used in emerging technologies like smartphones, self-driving cars, and artificial intelligence. Thanks to the current AI boom, Synopsys' stock has surged by 65% this year. However, on Friday, it experienced a 5.5% decrease in late trading.

Among Synopsys's notable clientele are Nvidia Corp., Intel Corp., and Advanced Micro Devices Inc.

Representatives from both Synopsys and Ansys were unavailable for comment at the time of writing.

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