Synopsys announced on Monday that it’s selling its Software Integrity Group to private equity firms Clearlake Capital and Francisco Partners in a $2.1 billion deal.
Synopsis has been offering semiconductor design and manufacturing solutions, semiconductor IP solutions for SoC designs, and application security and software risk management solutions.
Once the transaction closes — expected in the second half of 2024 — the software integrity business will emerge as an independent application security testing software provider.
The existing Software Integrity Group management team is expected to lead the new company, whose name will be announced at a later date.
Following the sale of its application security unit, Synopsys plans on accelerating its silicon-to-systems strategy and advancing its core design automation and IP businesses.
The first rumors of a possible sale of the software integrity business emerged in February, when Bloomberg reported that the business could be valued at $3 billion or even more.
Synopsys has now revealed that the transaction will have a total value of up to $2.1 billion, “including up to $475 million in cash payable upon Francisco Partners and Clearlake achieving a specified rate of return in connection with one or more liquidity transactions.”
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