Synopsys To Buy Magma
By Ed Sperling
Synopsys signed a definitive agreement to buy Magma Design Automation for $507 million, or $7.35 per Magma share, strengthening its hand in both the analog and digital tools and yield management markets.
Magma had been struggling for years, but over the past several years had expanded its portfolio to include advanced digital tools,analog design automation, one of the thorniest issues for shrinking features at each new process node, and into the manufacturing yield arena, where it struck an alliance with Applied Materials involving CAD and inspection systems for faster yield ramp.
John Chilton, senior vice president of marketing and strategic development at Synopsys, said that the real benefit of this acquisition is faster time to market for customers. “What we get is the ability to accelerate development,” he said. “We really are getting more requests for more technology. Deep-submicron CMOS is very complex in terms of materials, the number of transistor and the parasitics. Tools have to do more.”
He noted that Synopsys could have developed these capabilities internally, but it would have taken longer and cost more money than what it will achieve by buying Magma.
Phil Bishop, corporate vice president of worldwide marketing at Magma, said the combination makes a lot of sense. “On the digital side, we have both been working to advance customers to 28nm. The second piece is analog, and we have products that are extremely complementary to Synopsys and which have been doing very well in the market.”
Interestingly, Magma was the last completed IPO before the 2001 recession. Apache Design filed for an IPO in May, but was purchased by ANSYS before the actual public offering.
Both companies will continue to operate independently until the deal is finalized.
