Synopsys buys Synplicity for $227M
Industry observers believe the acquisition may have more to do with obtaining Synplicity’s ASIC verification tools as FPGAs have become the primary way of doing logic verification for chip designs.
By Ann Steffora Mutschler, Senior Editor -- EDN, March 20, 2008
Synopsys Inc this afternoon announced it has agreed to acquire FPGA implementation and debug software provider Synplicity Inc for $8.00 cash per Synplicity share.
The gross transaction is valued at approximately $227 million, and approximately $188 million net of cash acquired, Synopsys reported.
The Mountain View, Calif-based semiconductor design and manufacturing software company said the acquisition will significantly expand its technology portfolio, channel reach, and total addressable market when completed. Industry sources, however, believe the acquisition may have more to do with obtaining Synplicity’s ASIC verification tools, as FPGAs have become the primary way of doing logic verification for chip designs.
Further, this puts Synopsys back into the FPGA market segment, where Synplicity claims leadership position for FPGA implementation and debug.
Synopsys will also enter the fast-growing rapid prototyping market segment, which the company said it plans to grow by leveraging its verification technology, field presence, and virtual prototyping tools for rapid software development. The combined toolset is meant to allow electronics companies to better meet tight market windows with proven designs, even as software content continues to grow exponentially, Synopsys said.
“Synplicity’s strong product portfolio, expertise, and customer reach will be ideal complements to Synopsys," Aart de Geus, chairman and CEO of Synopsys, said in a statement. "The combination will expand our presence in the systems and mid-tier market segments, will support our strategy to provide rapid prototyping capabilities to a broad set of customers to enable much faster software development, and will enhance Synplicity’s already strong offering in FPGA implementation.”
Gary Meyers, president and CEO of Synplicity, said the acquisition by Synopsys will allow for the scaling of Synplicity's FPGA and rapid prototyping business to help more designers successfully solve the increasingly complex problems associated with creating today's chips and systems.
Meyers will join Synopsys as a general manager, while Synplicity co-founder, CTO, and VP Ken McElvain will join Synopsys to help architect the company's systems solutions.
The acquisition is expected to close in Q2.
This move also represents more consolidation for the EDA industry. Last week Cadence Design Systems Inc acquired Chip Estimate Corp, an IC planning and enterprise-level IP reuse management company. And late last month, Magma Design Automation Inc acquired Sabio Labs, an analog IP process migration specialist, for an undisclosed amount.
