Synopsys Inc. has agreed to sell its Software Integrity Group business to Clearlake Capital Group L.P. and Francisco Partners for up to $2.1 billion. The transaction includes up to $475 million in cash that will be paid upon achieving a specified rate of return in connection with liquidity transactions. After the completion of this deal, the Software Integrity Group will operate as an independent application security testing software provider.
The board of directors at Synopsys unanimously approved this transaction, which was announced on May 6, 2024. The closing of the deal is expected to take place in the second half of 2024, pending regulatory approvals and other customary closing conditions. The Software Integrity Group offers integrated software solutions that help development teams streamline their software development processes while managing business risks effectively. Its wide range of software security products can work with third-party and open-source tools, enabling organizations to enhance their security programs utilizing their existing investments.
Clearlake Capital Group L.P., a private equity firm focused on investing in technology companies, has partnered with Francisco Partners, a technology investment firm based in San Francisco, to make this acquisition possible. This partnership brings together two experienced firms with a shared focus on technology innovation and growth opportunities in the software industry.
With this acquisition, Synopsys will continue to focus on its core product offerings and expand its presence in the marketplace through partnerships and collaborations with other leading technology companies. The Software Integrity Group’s independent status as an application security testing software provider allows it to provide customers with more flexibility and choice when it comes to selecting their preferred solution for securing their applications.
For more details on this deal, please refer to the official press release from Synopsys Inc., Clearlake Capital Group L.P., and Francisco Partners.
