Software and IP company Synopsys announced today that it is to acquire semiconductor IP firm Virage Logic for $315 million.
Synopsys will pay $12 cash for each Virage Logic share, and since the latter has over 26 million shares that quickly becomes a sizeable amount. The transaction is expected to close by the end of 2010, when Virage Logic will cease trading.
Virage Logic’s President and CEO Alex Shubat will join Synopsys as part of the deal and will bring his company’s IP projects in to complement Synopsys’ DesignWare system. Synopsys hopes the acquisition will help it strengthen its place in the System-on-Chip (SoC) development market by increasing its overall IP portfolio.
“When I co-founded Virage Logic in 1996, it was with the belief that a semiconductor IP company could provide the technically superior building blocks that the industry needed to accelerate development of high quality, cost-effective end products,” said Shubat. “Today, the transition to a fabless, or ‘fab-lite’ model, coupled with the explosion in SoC product development costs at the advanced process nodes, has resulted in an escalating need by the semiconductor manufacturers for production-proven IP. By joining forces with Synopsys’ impressive engineering team and by gaining access to their global channel, we will be able to accelerate the development and delivery of our broad product offering to help customers meet their design-for-profitability goals.”
The board of directors on both sides have given the thumbs up to the deal, but it must also be approved by regulators and Virage Logic’s shareholders.