Keysight Technologies, Inc. KEYS recently announced that it has entered into a definitive agreement with Ansys, Inc. ANSS to acquire the latter’s PowerArtist business. This deal aligns with Keysight's ongoing strategy to expand its portfolio in the high-performance system design and simulation software sector. 
  
The transaction, subject to customary closing conditions, regulatory approvals and the successful completion of Synopsys, Inc.’s SNPS acquisition of Ansys, is expected to close in the first half of 2025.  

PowerArtist, a comprehensive RTL design-for-power platform of Ansys, is used by low-power semiconductor companies for early power analysis, profiling and reduction. Compared to traditional gate-level methodologies, PowerArtist provides rapid turnaround on multimillion-instance designs and enables early power-related design decisions. The platform’s consistent, accurate technology not only analyzes but can also automatically identify reduction opportunities through the unique modeling of physical implementation effects. Post-acquisition, PowerArtist will remain an independent, vendor-agnostic solution, enhancing its accessibility for a wide range of semiconductor companies.

Strong Portfolio to Boost KEYS’ Prospects

Keysight is witnessing solid adoption of its electronic design and test solutions due to technical advancements in mobile communications, semiconductors and automotive markets. The company’s 5G product design validation solutions, ranging from Layer 1 to 7, enable telecom and semiconductor companies to accelerate their 5G initiatives. Further, Keysight’s 5G network emulation solutions facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. 

The solutions offer cost-efficient test techniques with high flexibility and control capabilities, reducing time-to-market. Notably, over the past three years, Keysight witnessed a CAGR of more than 60% in order growth in the 5G domain. Intensive infrastructure investments in 5G deployment and positive trial testing results hold promise. 

The buyout marks a big consolidation in the technology hardware and equipment industry, as companies aim to reorganize their portfolios and align with shifting market conditions and technical changes. The transaction is expected to bolster Keysight’s diverse portfolio of cutting-edge solutions and provide greater resilience to its overall financial performance.

KEYS Stock’s Price Performance

Shares of Keysight have gained 8% over the past year compared with the industry’s growth of 6.8%.

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KEYS’ Zacks Rank and a Stock to Consider

Keysight currently sports a Zacks Rank #1 (Strong Buy).
 
A top-ranked stock in the broader industry has been discussed below:

Ubiquiti Inc. UI presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s highly flexible global business model remains apt to adapt to changing market dynamics, enabling it to overcome challenges while maximizing growth. 

The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%.

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