Synopsys to sell software unit to Clearlake, Francisco in $2.1 billion deal
2024.05.06 10:25
(Reuters) -Synopsys will sell its software integrity (SIG) unit to a private equity consortium led by Clearlake Capital and Francisco Partners in a deal valued at $2.1 billion, the chip designer said on Monday.
Reuters reported last week that the private equity firms had prevailed over rivals and that their consortium was in advanced talks to acquire the SIG unit, which provides application security testing for software developers.
The deal includes up to $475 million in cash that will be payable once the buyout firms hit a certain rate of return related to one or more liquidity transactions.
Liquidity transactions refer to deals where holders of a company’s stock, including employees, can sell their shares.
Synopsys (NASDAQ:) announced plans in late 2023 to divest its SIG unit. In January, the company agreed to acquire rival design software firm Ansys (NASDAQ:) for $35 billion, its largest-ever deal.
The SIG deal is expected to close in the second half of 2024 and will create a new standalone entity that provides application security testing software.
The company said it would release the name of the new business at a later date.
