Synopsys, Inc. has just made a significant announcement. They’ve reached a deal with Clearlake Capital Group, L.P. and Francisco Partners, two big private equity firms, to sell off their Software Integrity Group business. This transaction, valued at a whopping $2.1 billion, marks the Software Integrity Group’s emergence as a standalone application security testing software provider.
The deal is set to close in the latter part of 2024 pending customary closing conditions and regulatory approvals. After the transition, the existing management team of the Software Integrity Group will continue to lead the company under its new independent status. The specific name for this newly formed entity will be disclosed at a later time.
Sassine Ghazi, Synopsys’ president and CEO, expressed confidence in the move, emphasizing their commitment to focusing on their core business endeavors. This strategic shift aligns with their dedication to driving advancements in silicon to systems technology and enhancing their core design automation and design IP businesses.
The partnering private equity firms, Clearlake and Francisco Partners, are well-regarded for their successful investments in software platforms. They bring valuable expertise to the table, positioning the Software Integrity Group for continued growth and success as an independent player in the software security arena.
The significance of application security testing solutions is expected to rise as security becomes increasingly integrated into DevOps workflows. This transition underscores the importance of ensuring the quality and security of software applications, particularly in today’s dynamic threat landscape.
Synopsys’ Software Integrity Group offers a comprehensive suite of software security products designed to streamline software development processes while mitigating business risks. By integrating with third-party and open-source tools, their solutions empower organizations to build robust security programs tailored to their specific needs.
Overall, this transaction reflects Synopsys’ strategic vision and commitment to driving innovation in the technology industry. With a focus on maximizing R&D capabilities and fostering productivity, Synopsys continues to be at the forefront of catalyzing the era of pervasive intelligence.
For further information about Synopsys, visit their website at www.synopsys.com.
Clearlake, the investment firm involved in this deal, operates across private equity, credit, and related strategies. With a sector-focused approach, they provide long-term capital to dynamic businesses, particularly in the technology, industrials, and consumer sectors. Headquartered in Santa Monica, CA, Clearlake currently manages over $75 billion in assets.
