Mountain View, CA--Photonics and optoelectronics design, verification, and manufacturing software provider Synopsys (Nasdaq:SNPS), providers of Code V and LightTools software, signed a definitive agreement to acquire Magma Design Automation (Nasdaq:LAVA; San Jose, CA), a provider of chip design software. The partnership will bring together complementary technology, development, and support capabilities that will enable the combined company to more rapidly meet customer requirements linked to chip designs at both leading-edge and mature process nodes.
Synopsys will acquire Magma for $7.35 per Magma share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired. The closing of the merger is subject to customary conditions, including approval by the stockholders of Magma as well as U.S. regulators. In the event the merger closes as expected in the calendar Q2 2012, Synopsys anticipates it to be modestly accretive to non-GAAP earnings per share in its fiscal 2012. Synopsys plans to fund the acquisition with a combination of cash and debt, with the specifics to be determined at the time of close.
"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 20-nanometer 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 at 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."
Synopsys also reported results (http://synopsys.mediaroom.com/index.php?s=43&item=981) for its fourth quarter and fiscal year 2011 for the period ended October 31, 2011. Reported revenue was $390.5 million compared to $375.5 million for the fourth quarter of fiscal 2010. Revenue for fiscal year 2011 was $1.536 billion, an increase of 11.2% from $1.38 billion in fiscal 2010. "Synopsys had an outstanding fiscal 2011, with double-digit revenue and non-GAAP earnings per share growth," said Aart de Geus, chairman and CEO of Synopsys. "Our customers continue to drive design aggressively, even in the context of economic uncertainty. Our combination of advanced technology and support expertise is helping to solve the most pressing technical challenges. Synopsys' financial strength and predictable business model support an objective of double-digit non-GAAP earnings per share growth in fiscal 2012."
SOURCE: Synopsys; http://synopsys.mediaroom.com/index.php?s=43&item=982
