Synplicity Agrees to be Acquired by Synopsys

Synopsys, Inc. (NASDAQ: SNPS) will acquire Synplicity®, Inc. (NASDAQ: SYNP) for approximately $227 million. When completed, the acquisition will significantly expand Synopsys’ technology portfolio, channel reach and total addressable market. Synplicity President and Chief Executive Officer Gary Meyers will join Synopsys as a general manager. Synplicity Co-Founder, Chief Technical Officer, and Vice President Ken McElvain will join Synopsys to help architect the company’s systems solutions.

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 FPGA synthesis products, and Synplicity will gain an expanded product portfolio with which to serve its approximately 1,800 customers.

In addition to Synplicity’s leading solutions for FPGAs, Synopsys will gain a differentiated rapid prototyping portfolio that complements its virtual prototyping business. Combining Synplicity’s hardware-based rapid prototyping and Synopsys’ software-based virtual prototyping solutions will enable electronics companies to meet tight market windows with proven designs, even as software content continues to grow exponentially.

Under the terms of the agreement, Synopsys will pay $8 cash per Synplicity share, resulting in a gross transaction of approximately $227 million, and approximately $188 million net of cash acquired. The transaction is subject to regulatory and Synplicity shareholder approval, as well as 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.

More information: Synopsys | Synplicity