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Acquisition of Ansys (Tables) | 9 Months Ended
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Jul. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Schedule of Aggregate Purchase Consideration and Allocation | The aggregate purchase consideration was preliminarily allocated as follows:
|  | (in thousands) |  |
Cash for outstanding Ansys Common Stock(1) |  | $ | 17,613,185 |  |  |
Fair value of Synopsys Common Stock issued for outstanding Ansys Common Stock(2) |  | 17,105,538 |  |  |
Fair value of assumed Ansys equity awards attributable to pre-combination services(3) |  | 130,963 |  |  |
Settlement of pre-existing relationships |  | 8,794 |  |  |
Total purchase consideration |  | 34,858,480 |  |  |
Less: cash acquired |  | (931,740) |  |  |
Total purchase consideration, net of cash acquired |  | $ | 33,926,740 |  |  |
Allocations |  |  |  |
Total current assets |  | 902,639 |  |  |
Property and equipment |  | 105,193 |  |  |
Goodwill |  | 23,493,632 |  |  |
Intangible assets |  | 12,990,000 |  |  |
Other long-term assets |  | 256,210 |  |  |
Deferred revenue |  | (637,076) |  |  |
Other current liabilities |  | (310,082) |  |  |
Long-term deferred revenue |  | (34,070) |  |  |
Long-term deferred tax liabilities |  | (2,677,401) |  |  |
Other long-term liabilities |  | (162,305) |  |  |
|  | $ | 33,926,740 |  |  |
(1) Represents the total cash paid to settle 88.1 million outstanding shares of Ansys Common Stock as of the Acquisition Date at $199.91 per share and a small portion for the settlement of fractional shares. (2) Represents the fair value of 30.0 million shares of Synopsys Common Stock issued to settle 88.1 million outstanding shares of Ansys Common Stock. Synopsys issued 0.3399 of a share of Synopsys Common Stock for each Ansys share. The fair value of Synopsys Common Stock was $571.20 per share as of the Acquisition Date. (3) Represents the fair value of assumed Ansys options and RSUs attributed to pre-combination services. See Note 15. Stock-Based Compensation for additional information.
Schedule of Estimated Fair Value and Weighted Average Useful Life of the Intangible Assets | The estimated fair value and weighted average useful life of the Ansys intangible assets were as follows:
| Fair value |  | Useful Lives
| (in thousands) |  | (in years)
Core/developed technologies(1) | $ | 6,500,000 |  |  | 6 - 9
Customer relationships(2) | 5,100,000 |  |  | 9
Contract rights intangible(3) | 440,000 |  |  | 2
Trademarks and trade names(4) | 950,000 |  |  | 23
Total identified intangible assets | $ | 12,990,000 |  |  |
(1) Core/developed technology was identified from the products of Ansys and its preliminary fair value was determined using the relief-from-royalty method under the income approach. The relief-from-royalty method applies a royalty rate to projected income to quantify the benefit of owning the intangible asset rather than paying a royalty for use of the asset. The discount rate was determined at the time of measurement based on an analysis of the implied internal rate of return of the transaction, weighted-average cost of capital, and weighted-average return on assets. The economic useful life was determined based on the technology cycle related to each developed technology, as well as the cash-flows over the forecast period. (2) Customer relationships represent the preliminary fair value of future projected revenue that will be derived from sales of products to existing Ansys customers. The fair value was determined using the multi-period excess earnings method under the income approach, which involves isolating the net earnings attributable to the asset being measured based on present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. The economic useful life was determined based on historical customer turnover rates and the useful life of developed technology. (3) Contract rights intangible which represents contracted but unsatisfied or partially unsatisfied performance obligations, primarily relates to the dollar value of purchase arrangements with customers. The preliminary fair value was determined using the multi-period excess earnings method under the income approach. The economic useful life is based on the time to fulfill the outstanding order backlog obligation. (4)Trademarks and trade names refers to Ansys brand assets. The preliminary fair value was determined by applying the relief-from-royalty method under the income approach. This method is based on the application of a royalty rate to forecasted revenue attributable to Ansys brand assets. The economic useful life was determined based on the expected usage period of the brand assets and the anticipated cash flows over the forecast period.
Schedule of Assets and Liabilities Classified as Held for Sale | The following table presents the major components of financial results of our Software Integrity business for the periods presented:
| Three Months Ended July 31, |  | Nine Months Ended July 31, |  |
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |
|  |  | (in thousands) |  |  |  |
Revenue | $ | — |  |  | $ | 127,917 |  |  | $ | — |  |  | $ | 392,579 |  |  |  |  |
Cost of revenue | — |  |  | 40,279 |  |  | — |  |  | 136,010 |  |  |  |  |
Operating expenses | — |  |  | 91,854 |  |  | — |  |  | 262,745 |  |  |  |  |
Other income (expense), net | — |  |  | 605 |  |  | — |  |  | 1,601 |  |  |  |  |
Income (loss) from discontinued operations | — |  |  | (3,611) |  |  | — |  |  | (4,575) |  |  |  |  |
Loss on Software Integrity Divestiture | — |  |  | — |  |  | (8,299) |  |  | — |  |  |  |  |
Income (loss) from discontinued operations before income taxes | — |  |  | (3,611) |  |  | (8,299) |  |  | (4,575) |  |  |  |  |
Income tax provision (benefit) | — |  |  | 14,202 |  |  | (4,399) |  |  | 8,580 |  |  |  |  |
Income (loss) from discontinued operations, net of income taxes | $ | — |  |  | $ | (17,813) |  |  | $ | (3,900) |  |  | $ | (13,155) |  |  |  |  |
The following table presents significant non-cash items and capital expenditures of discontinued operations for the period presented:
| Nine Months Ended July 31,
| 2025 |  | 2024
| (in thousands)
Amortization and depreciation | $ | — |  |  | $ | 16,317 |
Reduction of operating lease right-of-use assets | $ | — |  |  | $ | 2,162 |
Amortization of capitalized costs to obtain revenue contracts | $ | — |  |  | $ | 20,808 |
Stock-based compensation | $ | — |  |  | $ | 47,476 |
Deferred income taxes | $ | (6,933) |  |  | $ | 18,939 |
Purchases of property and equipment | $ | — |  |  | $ | 972 |
The following table presents the major classes of assets and liabilities classified as held for sale as of July 31, 2025.
| (in thousands)
Assets: |
Accounts receivable, net | $ | 18,507 |
Inventories | 281 |
Prepaid and other current assets | 6,282 |
Property and equipment, net | 576 |
Operating lease right-of-use assets, net | 1,978 |
Goodwill | 31,523 |
Intangible assets, net | 15,170 |
Total current assets held for sale | $ | 74,317 |
Liabilities: |
Accounts payable and accrued liabilities | $ | 882 |
Operating lease liabilities | 2,103 |
Deferred revenue | 17,020 |
Total current liabilities held for sale | $ | 20,005 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Ansys had been acquired as of the beginning of fiscal year 2024.
| Three Months Ended July 31, |  | Nine Months Ended July 31,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in thousands)
Pro forma total revenue | $ | 2,290,354 |  |  | $ | 2,105,893 |  |  | $ | 6,666,029 |  |  | $ | 6,385,630 |
Pro forma net income (loss) | $ | 214,539 |  |  | $ | 107,135 |  |  | $ | 294,183 |  |  | $ | (127,250) |

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