Synopsys, Inc. (SNPS), an electronic design automation company, said on Monday that it has inked a deal with Clearlake Capital Group, L.P. and Francisco Partners, two private equity firms, to sell its Software Integrity Group business for up to $2.1 billion.
The transaction, expected to be closed in the second-half, includes up to $475 million in cash payable upon the achievement by Francisco Partners and Clearlake, of specified rate of return in connection with one or more liquidity transactions.
Sassine Ghazi, CEO of Synopsys, said, "For Synopsys, this move sharpens our focus on the unprecedented, high-growth opportunity we have in our core business- where the engineering of silicon and systems is converging as technology R&D teams look to capitalize on this AI-driven era of pervasive intelligence."
Post-transaction, the newly formed privately-held business will serve as an independent application security testing software provider, led by the existing Software Integrity Group management team.
The name of the new standalone entity will be announced at a later date.
SNPS was trading up by 1 percent at $542.30 in the pre-market trade on the Nasdaq.
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