MARLBORO, Mass.--Innoveda Inc. today announced plans to sell its VirSim design debugging and analysis software to Synopsys Inc. for $7 million. Under the agreement, Innoveda will keep the rights to the product source code, which will be used to integrate VirSim functionality into the company's suite of design verification tools.
Synopsys has licensed VirSim from Innoveda for its customers using its VCS Verilog simulator. The rights to VirSim resell agreements--outside of Innoveda--will be transferred to Synopsys, once the purchase is completed in the next several days, according to Innoveda.
"VirSim is no longer a strategic product for us and now competes in a market crowded with competition," said Will Herman, Innoveda president and CEO. "This agreement works well for Innoveda. It supports our strategic focus of delivering integrated solutions for system-level design by eliminating OEM support while allowing us to retain the technology for future products and improving our cash position."
Innoveda customers, who purchased VirSim bundled with other products from the company, will have continued support from the Marlboro company. The sale will reduce Innoveda's revenue targets for the balance of the year by about $1.2 million, said the company.