Synopsys (NASDAQ: SNPS), a Sunnyvale, CA-based provider of integrated software solutions, entered into a definitive agreement with Clearlake Capital Group, L.P. and Francisco Partners, for the sale of its Software Integrity Group business.
The transaction has a total value of up to $2.1 Billion, including up to $475M in cash payable upon Francisco Partners and Clearlake achieving a specified rate of return in connection with one or more liquidity transactions.
Upon completion of the transaction, the business will emerge as a newly independent application security testing software provider. The existing Software Integrity Group management team is expected to lead the newly independent, privately held company after the transaction closes.
The name of the new standalone entity will be announced at a later date. Synopsys is committed to a transition for the Software Integrity Group team, customers, and partners.
The transaction, which was unanimously approved by Synopsys’ Board of Directors, is currently expected to close in the second half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.
Led by CEO Sassine Ghazi, Synopsys provides integrated software solutions for development teams to build and deliver software, accelerating innovation while addressing business risk. Its portfolio of software security products interoperates with third-party and open-source tools, allowing organizations to leverage existing investments to build the security program that is best for them.
FinSMEs
06/05/2024