Mountain View, CA--Optoelectronic and photonic software provider Synopsys (Nasdaq:SNPS), through its Taiwan subsidiary, has signed a definitive agreement to acquire SpringSoft (Hsinchu, Taiwan), a supplier of specialized semiconductor integrated-circuit (IC) design software. Synopsys says the SpringSoft acquisition supports its strategy to quickly and effectively deliver the advanced capabilities that will help semiconductor customers solve their toughest design challenges, including verification and custom implementation. Synopsys also acquired ORA (Optical Research Associates) in late 2010.
Synopsys says that verification requirements have exploded as designs have become increasingly complex, and debugging is the most time-consuming part of verification, taking up nearly half of the design cycle. At the same time, custom implementation tools have not kept up with the dramatic improvements seen in digital design. Synopsys says that this acquisition will combine two industry-leading verification technology portfolios and help accelerate delivery of a unified, powerful system-on-chip (SoC) debug environment so customers can continue to meet the demands of today's complex electronic designs. In addition, by integrating the physical design technology and teams from SpringSoft, Ciranova and Magma, Synopsys can accelerate innovation and offer a higher level of automation in custom implementation tools.
Under the terms of the agreement, Synopsys Taiwan will commence a tender offer to acquire all of the outstanding shares of SpringSoft for approximately $1.90 per SpringSoft share in cash and acquire any remaining shares pursuant to a follow-on merger. The gross transaction value will be approximately $406 million or approximately $305 million net of cash acquired. The transaction, which is expected to close in the first quarter of fiscal 2013, is subject to the minimum tender of 51% of the current outstanding SpringSoft shares, the approval of the follow-on merger by SpringSoft shareholders, regulatory approvals in Taiwan, and other customary closing conditions.
After the closing, SpringSoft will become part of Synopsys and SpringSoft stock will cease trading. When completed, Synopsys anticipates the transaction to be slightly accretive to fiscal 2013 non-GAAP earnings per share.
"This acquisition will increase Synopsys' investment in Taiwan by growing our local engineering expertise, technology development capabilities and customer support," said Chi-Foon Chan, president and co-CEO at Synopsys. "Combining SpringSoft's team and platform with Synopsys' complementary technology will help Synopsys lead further innovations in debug to more rapidly address the growing verification challenge. Simultaneously, SpringSoft's innovative custom implementation solution and its strong presence in leading Asian, European and U.S. semiconductor companies will help accelerate Synopsys' delivery of automation and innovation to an area of IC design that has been stagnant in the past."
SOURCE: Synopsys; http://synopsys.mediaroom.com/index.php?s=43&item=1052