Synopsys to sell its software business
Synopsys has entered into a definitive agreement with Clearlake Capital Group, L.P. and Francisco Partners, two global private equity firms, regarding the sale of its Software Integrity Group business in a transaction with a total value of up to USD 2.1 billion.
The transaction includes up to USD 475 million in cash payable upon Francisco Partners and Clearlake achieving a specified rate of return in connection with one or more liquidity transactions. Upon completion of the transaction, the business will emerge as a newly independent application security testing software provider.
The existing Software Integrity Group management team is expected to lead the newly independent, privately held company after the transaction closes. The name of the new standalone entity will be announced at a later date.
"Clearlake and Francisco Partners have a strong track record of success investing in growing software platforms and are ideal partners to continue growing this business as an independent, world-class software security provider," said Sassine Ghazi, president and CEO of Synopsys, in a press release. "For Synopsys, this move sharpens our focus on the unprecedented, high-growth opportunity we have in our core business – where the engineering of silicon and systems is converging as technology R&D teams look to capitalize on this AI-driven era of pervasive intelligence."
The transaction is currently expected to close in the second half of 2024.
