A potential $35 billion deal is in the works as big design-software companies, Synopsys and Ansys, are in exclusive talks. The deal, which could be one of the first major transactions of the new year, is expected to be a stock-and-cash agreement.

According to sources familiar with the matter, Synopsys is in advanced negotiations to acquire Ansys. The companies are aiming to finalize the deal by the middle of next week, provided the discussions proceed smoothly.

If successful, the Synopsys-Ansys deal would mark one of the year’s significant acquisitions. This move is indicative of the ongoing dynamism within the tech industry and the pursuit of strategic partnerships to drive growth and innovation.