Synopsys, a firm known for its engineering of silicon and systems, has agreed to sell its Software Integrity Group to Clearlake Capital Group and Francisco Partners.
Clearlake and Francisco Partners are global private equity firms, both renowned for investing in and growing software platforms.
The transaction, valued at up to $2.1bn, includes $475m in cash, contingent upon the private equity firms achieving a specified return rate from future liquidity events. This acquisition will allow the Software Integrity Group to operate as an independent application security testing software provider, focusing on expanding its role in the burgeoning field of software security.
Specializes in the convergence of silicon and systems engineering, particularly within AI-driven technology environments, contributing significantly to the field of integrated circuit manufacturing and software security solutions.
Invests in software and technology platforms, employing its proprietary O.P.S.® framework to enhance operational performance and drive substantial growth in its portfolio companies.
A leading private equity firm that specializes in technology investments, particularly in carving out divisions from larger corporations to form successful, focused standalone entities.
The Software Integrity Group, under new leadership, aims to continue its development of application security testing solutions, integrating these into DevOps workflows to enhance software quality and compliance, thus addressing crucial cybersecurity challenges.
The strategic divestiture by Synopsys is intended to sharpen its focus on core businesses that are expected to experience significant growth due to AI and technological innovations. The sale also emphasizes the increasing importance of specialized security solutions in software development.
Synopsys president and CEO Sassine Ghazi said, “Clearlake and Francisco Partners have a strong track record of success investing in growing software platforms and are ideal partners to continue growing this business as an independent, world-class software security provider.”
Francisco Partners Co-Founder and CEO Dipanjan “DJ” Deb said, “We are excited to partner with Synopsys to complete the carve-out of its Software Integrity Group, a leading provider of application security testing solutions.”
Clearlake Co-Founder and Managing Partner Behdad Eghbali said, “As security becomes more embedded in DevOps workflows, we believe the demand and importance of application security testing providers will continue to rise.”
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