Synopsys To Sell Software Unit To PE Firms For $2.1 Bn
The completion of the acquisition is anticipated in the second half of 2024
Synopsys, a leader in chip design, on Monday said that it will sell its Software Integrity Group (SIG) to a consortium of private equity firms led by Clearlake Capital and Francisco Partners.
The deal, valued at USD 2.1 billion, follows recent reports that these firms were in advanced talks and had outpaced other competitors in securing the acquisition.
The SIG unit is recognised for providing application security testing solutions to software developers, an essential service that ensures software robustness and security across various industries.
As part of the transaction, the consortium has agreed to a clause that could see an additional USD 475 million paid out in cash, contingent upon achieving a specified rate of return through one or more liquidity transactions. Such transactions generally allow company stakeholders, including employees, to sell their shares.
This strategic divestiture was first indicated late in 2023 when Synopsys revealed its plans to offload the SIG unit. The move comes as part of a broader realignment of Synopsys’s business strategy, which includes the acquisition of Ansys, a rival design software firm, for USD 35 billion in what marks the largest deal in Synopsys's history.
The completion of the SIG sale is anticipated in the second half of 2024, at which point the unit will operate as a new, independent entity specialising in application security testing software.
