Highlights:

  • The Synopsys Software Integrity Group provides integrated software solutions to revolutionize the software development process, facilitating accelerated innovation while mitigating business risks.
  • The sale of the Software Integrity Group coincides with Synopsys’ announcement in January that it would buy the engineering applications company Ansys Corp. for USD 35 billion.

Synopsys Inc., an electronic design automation company, recently revealed its decision for the Software Integrity Group sale to Clearlake Capital Group LP and Francisco Partners Management LP for up to USD 2.1 billion.

The acquisition amount totals up to USD 2.1 billion, contingent upon Francisco Partners and Clearlake achieving a specified rate of return in connection with one or more liquidity events, which includes up to USD 475 million payable in cash. This additional sum is subject to an earn-out clause as part of the deal.

The Software Integrity Group sale will transition into a new standalone application security testing software provider.Top of Form The name of the new company will be disclosed at a later date. Upon the closure of the transaction, existing Software Integrity Group employees, including the management team, are anticipated to lead the new privately held company.

The Synopsys Software Integrity Group provides integrated software solutions to revolutionize the software development process, facilitating accelerated innovation while mitigating business risks. SIG’s software security product portfolio collaborates seamlessly with third-party and open-source tools, empowering organizations to utilize their existing investments and develop a tailored security program that suits their needs.

Synopsys’ decision to sell its Software Integrity Group business stems from its desire to concentrate on its core offerings.

“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,” the president and CEO of Synopsys, Sassine Ghazi, stated in a statement.

The sale of the Software Integrity Group coincides with Synopsys’ announcement in January that it would buy the engineering applications company Ansys Corp. for USD 35 billion. The agreement will merge Ansys’ simulation and analyst skills with Synopsys’ EDA solutions to provide a smoothly integrated silicon-to-systems approach to innovation.

Clearlake made headlines in December when it partnered with Insight Partners LP to acquire Alteryx Inc., a leading artificial intelligence analytics platform company, for a staggering USD 4.4 billion. In July, Francisco Partners, known for its aggressive acquisition strategy, teamed up with TPG Global LLC to acquire New Relic Inc., a prominent provider of cloud observability platforms, for a significant sum of USD 6.5 billion.