Synopsys to acquire Magma Design Automation

BANGALORE, INDIA: Magma Design Automation Inc., a provider of chip design software,  announced on Thursday that it has entered into a definitive agreement to be acquired by Synopsys, a world leader in software and IP used in the design, verification and manufacture of electronic components and systems.

The combination of the two companies' technologies, development capabilities, support teams and sales channels is expected to provide chip designers with greater access to state-of-the art electronic design automation (EDA) solutions that enable more profitable silicon, said a press release.

Under the terms of the merger agreement, Synopsys will acquire Magma for $7.35 per Magma share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired.

According to the release, the boards of directors of both companies have unanimously approved the transaction. The closing of the merger is subject to customary conditions, including approval by Magma stockholders as well as U.S. regulators.

"Magma and Synopsys have always shared a common goal of enabling chip designers to improve performance, area and power, while reducing turnaround time and costs on complex ICs," said Rajeev Madhavan, CEO of Magma.

"By joining forces now, we can ensure that chip designers have access to the advanced technology they need for silicon success at 28, 20 nanometer and below."