Synopsys Inc, a leading worldwide developer of human interface solutions for mobile computing, communications and entertainment devices, has signed an agreement to buy SpringSoft Inc (思源科技), a global supplier of specialized IC design software, through the open market, the company said yesterday.
The US firm, which secured the deal through its Taiwanese subsidiary, will tender an offer to acquire all of the outstanding shares of the Hsinchu-based company for NT$57 per share, Synopsys said in a statement.
“The acquisition supports Synopsys’ strategy to deliver the advanced capabilities that will help semiconductor customers solve their toughest design challenges, including verification and custom implementation,” the statement said.
The gross transaction value will be approximately US$406 million. The transaction is expected to close in the first quarter of next year and is subject to the minimum tender of 51 percent of the current outstanding SpringSoft shares, the statement said.
In addition, the deal has to win approval from SpringSoft shareholders and regulators in Taiwan, the local company said, adding that after the closing, SpringSoft will become part of Synopsys and its stock will cease trading on the local bourse.
“This acquisition will increase Synopsys’ investment in Taiwan by growing its local engineering expertise, technology development capabilities and customer support,” Synopsys Taiwan said.
Combining SpringSoft’s team and platform with Synopsys’ complementary technology will help Synopsys lead further innovations in debugging to more rapidly address the growing verification challenge, the subsidiary said.
Debugging is the most time-consuming part of the verification process and can often take up nearly half of the time assigned to the lengthy design cycle, Synopsys Taiwan said.
Simultaneously, SpringSoft’s innovative custom implementation solution and its strong presence in leading Asian, European and US semiconductor companies are set to help accelerate Synopsys’ delivery of automation and innovation to an area of IC design that has been stagnant in the past, the high-tech buyer said.