On May 5, 2024, Synopsys, Inc., a leader in silicon to systems design solutions, announced the signing of an Equity Purchase Agreement to sell its Software Integrity business unit to Sapphire Software Buyer, Inc., a company backed by investment firms Clearlake Capital Group, L.P. and Francisco Partners. The deal, valued at up to $2.1 billion, includes an upfront payment of $1.5 billion at closing, additional payments totaling $125 million over five fiscal quarters, and up to $475 million contingent on the sponsors achieving a specified rate of return. The transaction is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals. This strategic move allows Synopsys to concentrate on its core businesses of design automation and design IP, aligning...Show More

On May 5, 2024, Synopsys, Inc., a leader in silicon to systems design solutions, announced the signing of an Equity Purchase Agreement to sell its Software Integrity business unit to Sapphire Software Buyer, Inc., a company backed by investment firms Clearlake Capital Group, L.P. and Francisco Partners. The deal, valued at up to $2.1 billion, includes an upfront payment of $1.5 billion at closing, additional payments totaling $125 million over five fiscal quarters, and up to $475 million contingent on the sponsors achieving a specified rate of return. The transaction is expected to close in the second half of 2024, subject to customary closing conditions and regulatory approvals. This strategic move allows Synopsys to concentrate on its core businesses of design automation and design IP, aligning with its silicon to systems strategy. The Software Integrity Group, upon completion of the sale, will operate as an independent entity focused on application security testing software. The management team of the Software Integrity Group is set to lead the new company, which will be named later. The announcement was made jointly with the sponsors on May 6, 2024, and the press release was attached as Exhibit 99.1 to the SEC filing.