Synopsys completes acquisition of Magma

MOUNTAIN VIEW, USA: Synopsys Inc. has completed its acquisition of Magma Design Automation Inc., a provider of chip design software headquartered in San Jose, California.

The combination of Synopsys and Magma will enable the company to more rapidly meet the needs of leading-edge semiconductor designers for ever more sophisticated design tools, said a press release.

The value of the transaction is approximately $523 million net of cash acquired, or $7.35 per Magma share in cash, which Synopsys will fund using a combination of cash and debt. Synopsys anticipates it to be modestly accretive to non-GAAP earnings per share in its fiscal 2012, the release added.

Along with Magma's senior management team, Magma president and COO, Roy Jewell, will work with Synopsys to ensure a smooth integration of the companies for customers and employees. Magma's founder, chairman and CEO, Rajeev Madhavan, will not join Synopsys, but will be available for advice as they transition the company.