Synopsys said under the terms of the agreement it will pay $12 for each Virage share. The deal is valued at about $289 million net of cash acquired, Synopsys said. The transaction is subject to regulatory and Virage Logic shareholder approval and other closing conditions, but the boards of directors of both companies have already approved the deal, Synopsys said.
After the closing, Virage will become part of Synopsys and Virage stock will cease trading, Synopsys said The transaction is expected to close in the fourth quarter of Synopsys' fiscal 2010, which closes Oct. 31, the company said.
Virage President and CEO Alex Shubat will join Synopsys as part of the deal, Synopsys said. Earlier this year, Shubat told EE Times that Virage is a company of big ambitions that no longer sees itself as just a provider of a collection of semiconductor IP cores, instead betting on a future of becoming a supplier of "subsystems" that can be quickly, painlessly and deeply embedded in SoCs for its licensees.
Virage would become the latest in a string of acquisitions in recent months by Synopsys, the top ranked EDA vendor by revenue. Recent deals by Synopsys include the February acquisitions of ESL software vendor CoWare, analog design software startup Gemini Design Automation and virtual system prototyping technology provider Vast Systems Technology Corp.
Virage has also made several prominent acquisitions in recent times. In August 2009, Virage acquired ARC in an all-cash transaction valuing the company at about $41 million on a fully-diluted basis. Also in 2009, Dutch chip company NXP BV agreed to transfer part of its advanced CMOS IP rights, 160 staff and certain engineering equipment to Virage.
In 2008, Virage acquired Impinj Inc.'s logic non-volatile memory IP business for $5.2 million. In 2007, Virage acquired Ingot Systems Inc., a provider of IP and design services to the semiconductor industry.