Synopsys nabs inSilicon for $64m stock transaction - By Design - Brief Article

Electronic News, July 29, 2002

IF THE ACQUISITION STRATEGY IN THE EDA world is slowing, don't tell Synopsys Inc., which last week took steps to acquire inSilicon Corp. in a stock transaction valued at $64 million. The companies jointly signed an agreement for Synopsys to acquire all outstanding shares of inSilicon. The deal is still subject to customary approvals and closing conditions. This acquisition continues the EDA industry's cannibalistic approach to growth that some analysts have said will no longer be a viable business model soon as there will be no "young" companies left to devour.

For San Jose-based inSilicon the merger will allow the company to expand the reach of its IP, the company said. "Adding the inSilicon team will allow us to offer our customers the widest possible range of IP solutions at the highest level of quality," said John Chilton, senior VP and general manager of Synopsys' IP and systems business unit, in a statement.

The acquisition will be effected by means of a cash tender offer for all of the outstanding shares of inSilicon at a cash purchase price of $4.05 per share, followed by a backend merger to purchase any untendered shares, the companies said. Synopsys will also assume certain inSilicon stock options in the transaction. Phoenix Technologies, which owns about 69 percent of the outstanding shares of inSilicon, has agreed to tender those shares to Synopsys.