Synopsys all set to acquire security firm Black Duck Software

By : |November 3, 2017 0

Synopsys, the maker of semiconductor-design software has announced that it is acquiring software security firm Black Duck Software. Synopsys will take on privately held Black Duck Software in a deal worth approximately $565 million or $548 million worth of cash.

Black Duck CEO Lou Shipley said in a blog post, “As reliance on open source grew rapidly over the last decade because of its economic value, most organizations have struggled in their efforts to secure and manage it effectively.” he further said, “Many high-profile, costly breaches resulted. Our rapid growth and success over the last four years is evidence that organizations are taking open source security very seriously.” Black Duck employees, of which there are roughly 400, will join the California-based Synopsys team.

“Our vision is to deliver a comprehensive platform that unifies best-in-class software security and quality solutions,” said Andreas Kuehlmann, senior vice president and general manager of the Synopsys Software Integrity Group. He further added, “We look forward to working with Black Duck’s experienced team as we drive our combined solution to the next level of value for our customers.”

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Synopsys said it expects Black Duck to contribute between $55 million and $60 million to its fiscal 2018 revenue. It estimates the acquisition will dilute its 2018 non-GAAP earnings per share by about 12 cents and expects the deal to break even in the second half of 2019 and be accretive thereafter. Also, Black Duck will strengthen Synopsys’ ability to push security and quality testing throughout its software development lifecycle, reducing risks for its customers.

The acquisition is expected to close in December 2017.

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