Synopsys inks deal with Virage Logic

SAN FRANCISCO: EDA and IP vendor Synopsys Inc has signed definitive agreement with Virage Logic to acquire IP provider Virage Logic for $315 million in cash. The procurement of Virage would complement Synopsis’ DesignWare interface and analog IP portfolio

The deal is being seen as a natural fit to Synopsis’ strategic vision. Virage's product offering is complementary to what Synopsys has today and the agreement comes about a month after EDA vendor Cadence Design Systems Inc. announced an agreement to buy memory IP vendor Denali Software Inc. for $315 million in cash.

Synopsys has built a high-quality IP business over the last decade, and many of their customers now rely on their commercial, off-the-shelf IP to save both cost and time to create their SoCs. Also Virage products plays a perfect counterpart to the Synopsys Interface analog IP portfolio by adding embedded memories, standard cells and programmable cores for control and multimedia subsystems. In the case of physical IP, Virage is a perfect entrant against IP giant ARM Holdings plc and foundries Taiwan Semiconductor Manufacturing  Co and United Microelectronics Corp.

The transaction is subject to regulatory and Virage Logic shareholder approval and other closing conditions, but the boards of directors of both companies have already approved the deal, Synopsys said. The transaction is expected to close in the fourth quarter of Synopsys' fiscal 2010, by October 31.