Maintaining our $327 Fair Value Estimate as Synopsys Enters a Definitive Agreement to Acquire Ansys

Ansys is an industry leader in engineering simulation software, with simulation solvers across a wide range of disciplines--from electromagnetics to fluid dynamics. We think Ansys warrants a wide economic moat, thanks to high customer switching costs, network effect, and intangible assets--all supported by the complexity of problems Ansys seeks to solve. We think the company’s outlook is bright as it continues to prove its breadth in addressing diverse simulation problems as the nature of technological changes drastically.