Synopsys to sell software integrity group to private equity firms for $2.1B

Synopsys has entered into an agreement with Clearlake Capital Group and Francisco Partners for the sale of its Software Integrity Group business in a transaction valued at up to $2.1 billion. The transaction is expected to close in the second half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.

After the transaction closes, the business will emerge as an independent application security testing software provider. The existing Software Integrity Group management team is expected to lead the newly independent company.

Synopsys stated that this move allows them to focus on the opportunity in their core business, where the engineering of silicon and systems is converging as technology R&D teams look to capitalize on the AI-driven era of pervasive intelligence.

J.P. Morgan served as financial advisor and Cleary Gottlieb Steen & Hamilton served as legal advisor to Synopsys. Evercore, Deutsche Bank, and Barclays acted as financial advisors to Clearlake and Francisco Partners.

Sidley Austin acted as lead legal advisor to Clearlake and Francisco Partners, with Simpson Thacher & Bartlett also advising Francisco Partners.

[Image courtesy: Synopsys]

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