Global Sources
EE Times-India
 
EE Times-India > EDA/IP
 
 
EDA/IP  

Synopsys to buy rival Magma

Posted: 02 Dec 2011     Print Version  Bookmark and Share

Keywords:acquisition  EDA  chip design 

Synopsys, Inc. has announced to acquire California-headquartered Magma Design Automation Inc., a provider of chip design software, for Rs.2,273.54 crore ($507 million). Synopsys will pay Rs.329.60 ($7.35) per Magma share in cash, and will fund the acquisition with a combination of cash and debt, "with the specifics to be determined at the time of close."

The deal, which is expected to close in the second quarter of 2012, would be the biggest acquisition in EDA in years. It would also bring together competitors who have traditionally been fierce rivals.

The acquisition, according to Synopsys, will bring together complementary technology, development and support capabilities which will enable the combined company to more rapidly meet customer requirements linked to chip designs at both leading-edge and mature process nodes.

Synopsys On An Acquisition Spree
This year, Synopsys bought two more companies; but Magma's acquisition is touted as the biggest one in EDA. Read recent news on the issue.
 •  Synopsys buys nSys, gains VIP
 •  Synopsys buys Extreme DA, gains timing analysis.

"The dramatic rise in complexity of today's semiconductor designs for all process nodes requires an equally dramatic increase in designer productivity. Customers are either dealing with the very complex physics of 20nm design or they are squeezing the last bit of performance and cost from designs at mature, high-value nodes. To achieve success, our customers are asking for more new EDA capabilities than ever before," said Aart de Geus, chairman and CEO, Synopsys. "This acquisition will enable Synopsys to accelerate the delivery of the technology our customers need to keep the overall cost of design in check."

The closing of the merger is subject to customary conditions, including approval by the stockholders of Magma as well as US regulators.

In addition, soon after the announcement, law office of Brodsky & Smith, LLC has started investigating potential claims against the board of directors of Magma relating to the proposed acquisition. "The investigation concerns possible breaches of fiduciary duty and other violations of state law by the Magma board for not acting in the company's shareholders' best interests in connection with the sale process to Synopsys."

"The transaction may undervalue Magma as its stock traded at Rs.378.92 ($8.45) as recently as July 7, 2011. In addition, an analyst has set a price target of Rs.493.27 ($11) per share for Magma stock," the firm stated.





Comment on "Synopsys to buy rival Magma"
Comments:  
*  You can enter [0] more charecters.
*Verify code:
 
 
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

 

Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

 
Back to Top