Synopsys to Sell Software Integrity Business to Clearlake Capital and Francisco Partners in Definitive Agreement

Synopsys, Inc. has announced a groundbreaking agreement with Clearlake Capital Group, L.P. and Francisco Partners to sell its Software Integrity Group business in a deal worth up to $2.1 billion. This transaction is set to establish the Software Integrity Group as a leading application security testing software provider, operating independently.

The deal, expected to close in the second half of 2024 pending regulatory approvals, marks a strategic move for Synopsys to focus on accelerating its silicon to systems strategy and advancing its core design automation and design IP businesses.

Upon completion of the transaction, the Software Integrity Group will emerge as a newly independent entity, with the existing management team leading the way. The new standalone company’s name will be revealed at a later date, ensuring a seamless transition for team members, customers, and partners.

Sassine Ghazi, president and CEO of Synopsys, expressed confidence in the partnership with Clearlake and Francisco Partners, citing their successful track record in growing software platforms. The move allows Synopsys to concentrate on the high-growth opportunities in its core business, aligning with the evolving technology landscape.

The Software Integrity Group’s robust portfolio of application security testing products is well-positioned to meet the rising demand for secure software development in the era of artificial intelligence. This transaction not only benefits Synopsys but also propels the Software Integrity Group towards accelerated growth and innovation as a standalone enterprise.