Synopsys, Inc., a firm specializing in electronic design automation, announced on Monday that it has arranged to sell its Software Integrity Group business to two private equity firms, Clearlake Capital Group, L.P. and Francisco Partners. The deal is valued at up to $2.1 billion.
The sale, slated to close in the latter half of the year, could involve a cash payment of up to $475 million. This is contingent on Clearlake and Francisco Partners achieving a stipulated rate of return through one or more liquidity transactions.
According to Synopsys CEO Sassine Ghazi, the decision to sell enables the company to pinpoint its efforts on the high-growth potential in its primary business where silicon and system engineering coincide. This is a trend that technology research and development teams are seeking to exploit in this age of pervasive intelligence characterized by AI.
Following the conclusion of the transaction, the Software Integrity Group business will transition into a privately-held business, continuing its function as an independent application security testing software provider under the stewardship of its current management team.
The name of the restructured entity, set to operate independently, will be revealed at a future date.
In pre-market trading on the Nasdaq, Synopsys' shares saw a 1 percent increase to $542.30.
