May 6, 2024 at 11:09AM
Synopsys is selling its Software Integrity Group to private equity firms Clearlake Capital and Francisco Partners in a $2.1 billion deal. The business will become an independent application security testing software provider with the existing management team leading the new company. Synopsys plans to focus on its core design and IP businesses post-sale.
Key takeaways from the meeting notes:
– Synopsys is selling its Software Integrity Group to private equity firms Clearlake Capital and Francisco Partners in a $2.1 billion deal, with the transaction expected to close in the second half of 2024.
– The software integrity business will emerge as an independent application security testing software provider after the transaction closes, with the existing management team expected to lead the new company.
– Following the sale of its application security unit, Synopsys plans to focus on accelerating its silicon-to-systems strategy and advancing its core design automation and IP businesses.
– Rumors of the sale emerged in February, with initial valuation estimates of $3 billion, but the total value of the transaction is now confirmed to be up to $2.1 billion, including up to $475 million in cash payable upon achieving a specified rate of return in connection with liquidity transactions.