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June 14, 2010

Synopsys to acquire Virage Logic in $315m deal

Acquisition adds embedded memories with test and repair, standard cell libraries and programmable cores

By CBR Staff Writer

Chip design software maker Synopsys has agreed to acquire Virage Logic, a provider of semiconductor intellectual property (IP) for the design of integrated circuits, in a transaction valued at approximately $315m.

Synopsys said that the Virage Logic’s offering will complement its DesignWare interface and analog IP portfolio by adding embedded memories with test and repair, non-volatile memories (NVMs), standard cell libraries, and programmable cores for control and multimedia sub-systems.

The company said that the Virage Logic’s acquisition will strengthen its ability to help design teams achieve their system-on-chip (SoC) development goals by providing them with a portfolio of high-quality IP and worldwide technical support.

Under the terms of the agreement, Synopsys will pay $12.00 cash per Virage Logic share, resulting in a transaction value of approximately $315m, or approximately $289m net of cash acquired.

Upon closing the transaction, Virage Logic will become part of Synopsys, and Virage Logic President and CEO Alex Shubat will join Synopsys. Synopsys anticipates the transaction to be neutral to non-GAAP earnings per share in fiscal 2010, and accretive in fiscal 2011.

Dr Aart de Geus, chairman and CEO at Synopsys, said: "With more functionality being integrated into a single device, high-quality IP continues to be key for enabling designers to reduce integration risk and speed time-to-market.

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"Bringing Synopsys and Virage Logic together broadens our portfolio and builds on two very strong technical teams. It is also in line with what so many customers are looking to Synopsys to address: a way to quickly incorporate standard functions into their SoCs so they can focus on developing differentiated products."

The transaction, which is expected to close in the fourth quarter of Synopsys’ fiscal 2010, is subject to regulatory and Virage Logic shareholder approval, as well as other customary closing conditions.

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