On May 6, 2024, Synopsys, Inc., a leader in silicon to systems design solutions, announced that it had entered into a definitive agreement to sell its Software Integrity Group to Clearlake Capital Group, L.P. and Francisco Partners for up to $2.1 billion. A part of the sale could be realized as $475 million cash conditioned on the private equity firms’ future profitability from the transaction. Mindful of pivotal silicon and systems strategy advancements and market demands, this divestiture enables Synopsys to recenter its strategic focus while setting up the Software Integrity Group as an independent entity adept in application security testing, led by its existing management team. The deal, awaiting regulatory approval, is projected to close in the latter half of 2024.

Bearing the pressures and evolution of global cybersecurity threats, Synopsys ensures a seamless transition for the Software Integrity Group—a business critical in securing software against emerging risks, including those arising from AI advancements. Clearlake and Francisco Partners bring their experienced, strategic insight to the table, prepared to enrich the Software Integrity Group’s operational excellence and product offerings.

Synopsys, steering through the era of pervasive intelligence, shapes foundational design solutions for semiconductor and systems customers across various sectors. It pioneers in edging R&D capabilities, linked closely with electronic design automation, silicon IP, and system verification. Meanwhile, Clearlake and Francisco Partners, with AUM of over $75 billion and approximately $45 billion respectively, boast long-standing expertise across their tech-centric investments.

The agreement garnered unanimous support from the Synopsys Board and excitably nods from the legal and financial advisors, including J.P. Morgan and Cleary Gottlieb for Synopsys; Evercore, Deutsche Bank, Barclays, Sidley Austin, and Simpson Thacher for Clearlake and Francisco. Reflecting forward-looking statements, the press release concluded with caution regarding transactional uncertainties and emphasized Synopsys’ commitment to its objectives despite these prospective changes.

Software & IT Services, Semiconductor and Semiconductor Equipment, Private Equity,United States

Synopsys enters definitive agreement to sell its software integrity business to Clearlake Capital and Francisco Partners