This excerpt taken from the SNPS 8-K filed Mar 25, 2008.
MOUNTAIN VIEW, Calif., March 20, 2008 Synopsys, Inc. (Nasdaq: SNPS), a world leader in software and IP for semiconductor design and manufacturing, today announced it has signed a definitive agreement to acquire Synplicity®, Inc.
(Nasdaq: SYNP), a leading supplier of innovative field programmable gate array (FPGA) and IC design and verification solutions that serve a wide range of communications, military/aerospace, semiconductor, consumer, computer, and other electronic applications markets. When completed, the acquisition will significantly expand Synopsys technology portfolio, channel reach and total addressable market.
In addition to Synplicitys leading solutions for FPGAs, Synopsys will gain a differentiated rapid prototyping portfolio that complements its virtual prototyping business. Combining Synplicitys hardware-based rapid prototyping and Synopsys software-based virtual prototyping solutions will enable electronics companies to meet tight market windows with proven designs, even as software content continues to grow exponentially.
Under the terms of the agreement, Synopsys will pay $8 cash per Synplicity share, resulting in a gross transaction of approximately $227 million, and approximately $188 million net of cash acquired. The transaction is subject to regulatory and Synplicity
shareholder approval, as well as other customary closing conditions, and is expected to close in the second calendar quarter of 2008. After the closing, Synplicity will become part of Synopsys and Synplicity stock will cease trading.
When completed, Synopsys anticipates the transaction to be accretive in fiscal 2009 and slightly dilutive in fiscal 2008, while remaining within the current 2008 non-GAAP earnings per share guidance range.
Synplicitys strong product portfolio, expertise, and customer reach will be ideal complements to Synopsys, said Aart deGeus, chairman and CEO of Synopsys. The combination will expand our presence in the systems and mid-tier market segments, will support our strategy to provide rapid prototyping capabilities to a broad set of customers to enable much faster software development, and will enhance Synplicitys already strong offering in FPGA implementation.
The acquisition by Synopsys will allow us to scale Synplicitys FPGA and rapid prototyping business to help more designers successfully solve the increasingly complex problems associated with creating todays chips and systems, said Gary Meyers, president and CEO of Synplicity.
Synplicity President and Chief Executive Officer Gary Meyers will join Synopsys as a general manager. Synplicity Co-Founder, Chief Technical Officer, and Vice President Ken McElvain will join Synopsys to help architect the companys systems solutions.