Synopsys (Nasdaq:SNPS) will acquire Magma Design Automation (Nasdaq:LAVA) for $7.35 a share in cash, which will result in a transaction value of about $507 million net of cash and debt acquired. According to the two companies, their combined technologies, development capabilities, support teams and sales channels will provide chip designers with greater access to state-of-the art electronic design automation (EDA) solutions that will enable more profitable silicon.
The boards of directors of Magma and Synopsys have unanimously approved the transaction. The closing of the merger is subject to customary conditions, including approval by Magma stockholders as well as U.S. regulators.
According to Synopsys and Magma Design Automation, the merger is driven by the industry’s increasing need for innovative and highly automated analog and digital EDA technologies. Magma’s product portfolio is stronger than ever and is highly complementary with Synopsys’s resources, channel and technology portfolio. The deal will allow the parties to help customers to improve performance, area and power while reducing turnaround time and the cost of complex ICs.
Magma Design Automation is a provider of chip design software headquartered in San Jose, California. Synopsys is a leader in software and IP used in the design, verification and manufacture of electronic components and systems. The company is headquartered in Mountain View, California.