Synopsys Divests Software Integrity Unit for $2.1 Billion, Sharpens Focus on AI Chip Market

The sale to Clearlake Capital and Francisco Partners includes conditions for additional cash payouts based on performance milestones.

Synopsys has agreed to sell its Software Integrity Group to a consortium led by private-equity firms Clearlake Capital and Francisco Partners.
The $2.1 billion deal is part of Synopsys' strategic pivot towards enhancing its core semiconductor design operations, emphasizing AI-driven technologies.
The transaction, set to close in the second half of 2024, will establish the Software Integrity Group as an independent entity focused on application security testing.
Synopsys' recent activities include a massive $35 billion acquisition of rival Ansys, underscoring its aggressive expansion in the chip design sector.
Shares of Synopsys saw a modest increase following the announcement, reflecting positive market reception.