Ansys (ANSS) stock jumped Friday on a report that the maker of engineering simulation software might be a takeover target.

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Bloomberg reported late Thursday that Ansys is weighing its options, including a sale, after getting takeover interest.

Ansys makes simulation software used by engineers to help predict how products from semiconductors to engines will work in the real world. It serves such industries as aerospace and defense, automotive, energy, health care and industrial equipment.

Oppenheimer analyst Ken Wong said in a client note that potential buyers include multinational companies such as Siemens (SIEGY), Honeywell (HON) and General Electric (GE), which “have previously shown an appetite for software.”

Electronic design automation companies like Cadence Design Systems (CDNS) and Synopsys (SNPS) also could be potential acquirers, Wong said.

Ansys Stock Blasts Off

In morning trades on the stock market today, Ansys stock rocketed 12% to 339.46.

Ansys stock has been in a consolidation pattern for 23 weeks with a buy point of 351.23, according to IBD MarketSmith charts.

Industry peer Altair Engineering (ALTR) could see a “halo effect” from the takeover talk, Wong said. “Most investors felt Altair was the more logical M&A target in the simulation space due to its size (roughly $6 billion market cap),” he said. Ansys has a market cap of over $26 billion.

Altair stock rose 5.9% to 79.11 in morning trades.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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