Synplicity, Inc. (Nasdaq:SYNP), a leading supplier of solutions for the design and verification of semiconductors, announced it has signed a definitive agreement to be acquired by Synopsys, Inc., (Nasdaq:SNPS) a world leader in software and IP for semiconductor design and manufacturing. When completed, the acquisition will expand Synplicity’s product portfolio and extend the market reach of its industry leading products.
The combination of Synopsys’ world class simulation tools, virtual prototyping products, and IP with Synplicity’s Confirma platform, which accelerates functional verification of ASICs, will accelerate revenue growth in the rapidly growing market for SoC verification solutions. The acquisition also provides the opportunity to leverage Synopsys’ advanced IC technology to further improve Synplicity’s market leading FPGA synthesis products, and Synplicity will gain an expanded product portfolio with which to serve its approximately 1,800 customers.
Under the terms of the agreement, Synopsys will pay $8 cash per Synplicity share, resulting in a gross transaction value of approximately $227 million, and approximately $188 million net of cash acquired. The transaction is subject to regulatory and Synplicity shareholder approval, and other customary closing conditions, and is expected to close in the second calendar quarter of 2008. After the closing, Synplicity will become part of Synopsys, and Synplicity stock will cease trading.
“The acquisition by Synopsys will allow us to scale 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,” said Gary Meyers, president and CEO of Synplicity.
“Synplicity’s strong product portfolio, expertise, and customer reach will be ideal complements to Synopsys,” said Aart deGeus, chairman and CEO of Synopsys. “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 the FPGA implementation market.”
“Today’s pervasive use of FPGAs for system implementation and SoC verification is creating demand for more complete product solutions and expanded technology innovation. I look forward to meeting this innovation challenge with the combined technology assets, complementary talents and similar cultures of our two companies,” said Ken McElvain, co-Founder, chief technical officer and vice president of Synplicity.
Gary Meyers will join Synopsys as a general manager. Ken McElvain will join Synopsys to help architect the company’s systems solutions.
Deutsche Bank Securities Inc. acted as exclusive financial advisor to Synplicity.
Synplicity®, Inc. (Nasdaq:SYNP) is a leading supplier of innovative IC design and verification solutions that serve a wide range of communications, military/aerospace, semiconductor, consumer, computer, and other electronic applications markets. Synplicity’s FPGA implementation tools provide outstanding performance, cost and time-to-market benefits by simplifying, improving and automating logic synthesis, physical synthesis, analysis and debug for programmable logic designs. Synplicity’s ESL synthesis solutions significantly improve productivity for DSP designs realized in ASIC and FPGA devices. The Confirma(tm) at-speed verification platform, comprising software tools and the HAPS(tm) family of prototyping systems, enables both comprehensive verification of ASIC, ASSP and SoC designs and software development prior to chip tapeout. Synplicity is the number one supplier of FPGA synthesis tools and its physical synthesis and ASIC verification technologies are the recipients of several prestigious industry awards. The company operates in over 20 facilities worldwide and is headquartered in Sunnyvale, California.