Ansys Earnings: Results Come in Light as the Synopsys Transaction Inches Closer

We maintain our $327 per share fair value estimate for wide-moat Ansys after the firm reported first-quarter results below our expectations. We remind investors that in December 2023, narrow-moat Synopsys entered into a definitive agreement to acquire Ansys in a cash and stock deal for an enterprise value of approximately $35 billion. With this, Ansys’ management did not provide guidance or hold a call. Our $327 fair value estimate is blended, based on a 75% chance of Ansys shareholders receiving the $349 in value from Synopsys, and a 25% chance of the deal not materializing and Ansys continuing to operate independently at a stand-alone valuation of $262 per share.