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Synopsys to buy Magma for $507 million

11/30/2011 10:31 PM EST
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old account Frank Eory
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re: Synopsys to buy Magma for $507 million
old account Frank Eory   11/30/2011 11:13:30 PM
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Wow, a 28% premium over today's closing price for Magma (stock symbol LAVA). If this gives Synopsys' analog tools offerings a big boost, it will be money well spent. And once again, EDA is back to the Big Three...

caltop
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re: Synopsys to buy Magma for $507 million
caltop   11/30/2011 11:14:36 PM
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I hope the government blocks this as this acquisition would leave Synopsys as the dominant solution for P&R, timing and DRC tools.

mcgrathdylan
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re: Synopsys to buy Magma for $507 million
mcgrathdylan   11/30/2011 11:28:02 PM
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Do you think that is a possibility? That came up on the conference call, with Aart de Geus saying that Synopsys is confident of the outcome. It seems to me that the government is no more likely to step in here than with many other EDA deals of the past.

caltop
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re: Synopsys to buy Magma for $507 million
caltop   11/30/2011 11:59:37 PM
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I don't think it will get blocked, I'm just hoping it does. The irony is Magma paid Synopsys about a half billion dollars to settle a patent lawsuit which is about the same price as Synopsys is paying for Magma. So in effect Synopsys got Magma for free.

mcgrathdylan
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re: Synopsys to buy Magma for $507 million
mcgrathdylan   12/1/2011 12:39:53 AM
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Wasn't that settlement amount only $12.5 million? http://www.eetimes.com/electronics-news/4187513/Magma-to-pay-Synopsys-12-5-million-to-settle-suit

caltop
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re: Synopsys to buy Magma for $507 million
caltop   12/1/2011 1:37:24 AM
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Whoops, you're correct. For some reason I thought it was a half billion settlement.

techtoysavvy
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re: Synopsys to buy Magma for $507 million
techtoysavvy   12/1/2011 12:53:47 AM
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Amusing. Would your viewpoint change if it was based on facts? Dylan was kind enough to link to the details of the settlement in his article.

techtoysavvy
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re: Synopsys to buy Magma for $507 million
techtoysavvy   12/1/2011 12:55:05 AM
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Sorry. By the time I registered to post. Dylan beat me to it.

old account Frank Eory
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re: Synopsys to buy Magma for $507 million
old account Frank Eory   12/1/2011 8:11:08 PM
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"this acquisition would leave Synopsys as the dominant solution for P&R, timing and DRC tools." Cadence Encounter is no slouch on P&R and timing analysis, and many engineers swear by Mentor Calibre for DRC.

rick merritt
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re: Synopsys to buy Magma for $507 million
rick merritt   11/30/2011 11:43:27 PM
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Given the companies have no consumer biz, I would think FTC wuld be hard pressed to object, even though engineers may fear rising prices for tools after this deal. I wonder will Cadence feel pressure to merge with Mentor?

mcgrathdylan
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re: Synopsys to buy Magma for $507 million
mcgrathdylan   12/1/2011 12:01:08 AM
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If you recall, a Cadence-Mentor merger was in the works a few years ago but fell through. Many felt it was a bad idea from the start because of so much product overlap. I don't think that is likely to happen. This is a different deal because Magma really is a lot smaller than Synopsys, Mentor or Cadence. Obviously there is product overlap with Synopsys and Magma, but not to the same degree.

stippu
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re: Synopsys to buy Magma for $507 million
stippu   12/2/2011 1:27:10 PM
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Dylan is right - there isnt going to be any merger between Cadence and Mentor. Wally Rhines was here in Bangalore for the Mentor user conference and he just laughed off the idea of a Cadence-Mentor merger when I asked him about it. He said, "why should I feel any pressure on this - Magma is so much smaller and we are going to be a $1 billion company, there is no pressure. And, regarding the Synopsys_Magma issue -he quipped, " I frankly cannot understand why it happened, you should ask Art and tell me about it.

yalanand
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re: Synopsys to buy Magma for $507 million
yalanand   12/1/2011 10:06:26 AM
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@rick.merritt, cadence will definitely feel the pressure. Currently the SE-Encounter offered by cadence is competing Magma. But after this merger Magma will definitely become vendors first choice because of inhouse STA checking capability.

DataMuncher
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re: Synopsys to buy Magma for $507 million
DataMuncher   12/1/2011 3:14:19 AM
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People talk about the big 3 EDA companies, but seem to forget about Ansys. Also very big and buying up companies like Apache.

yalanand
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re: Synopsys to buy Magma for $507 million
yalanand   12/1/2011 10:04:21 AM
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@DataMuncher Just curious to know if Ansys is used in semiconductor industry ? I read somewhere that Ansys is used to simulate the IC stress/strin profile. Have you personally used this tool ?

Ravishankar.Subramanya
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re: Synopsys to buy Magma for $507 million
Ravishankar.Subramanya   12/1/2011 6:36:07 AM
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Unfortunately such M&A's is likely to kill sound technologies inherent in aquired products with or without intention due to internal re-orgs etc in due course. SNPS might claim that we aquire talent and develop further to solve customer issues, but what customers really loose is differentating technologies or aquired company platforms on which they would have invested considering the scale or sizes of these companies. Prey at the end are customers and employees. Sound example for the reason of occupy wall street :^) !

yalanand
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re: Synopsys to buy Magma for $507 million
yalanand   12/1/2011 10:02:20 AM
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I hope this deal will make the life of engineer's easy. Earlier engineers used Magma for P&R and then port that data into Synopsys to check for timing issues. I hope this merger will create a single tools which will do both palcement and timing check.

lcovey
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re: Synopsys to buy Magma for $507 million
lcovey   12/2/2011 12:12:31 AM
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This should actually open up the opportunity for some of the other smaller companies offering P&R. Once the two companies are deep into their integration phase and internal politics, the innovators have a chance to compete on a more level playing field. Last I looked their were about 20 other players.

eewiz
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re: Synopsys to buy Magma for $507 million
eewiz   12/2/2011 12:32:31 PM
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I dont know why Rajeev agreed to sell. I thought he was going to stand and fight SNPS and CDNS. Does anyone how much % stake Rajeev has in Magma?

garydpdx
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re: Synopsys to buy Magma for $507 million
garydpdx   12/2/2011 4:07:15 PM
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There is the possibility that the Board overruled Rajeev because the deal was too good to pass on, much like what happened last week at American Airlines when they went for Chapter 11 bankruptcy protection (Gerard Arpy 'retired' as a result). We'll see if any more news and rumors shake out of this.

t.alex
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re: Synopsys to buy Magma for $507 million
t.alex   12/2/2011 2:18:18 PM
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What does Magma do?

goafrit
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re: Synopsys to buy Magma for $507 million
goafrit   12/2/2011 4:37:40 PM
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They make CADs for IC design and I do not think they do it very well.

yalanand
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re: Synopsys to buy Magma for $507 million
yalanand   12/5/2011 6:26:42 AM
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@goafrit, I am not sure if you have used MAGMA tools, but I have been using MAGMA tools from last 4 years and I am pretty happy with those tools especially P&R tools. Although cadence Encounter is giving tough competition to Magma but Magma is preferred for bigger design's.

pachyderm_1
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re: Synopsys to buy Magma for $507 million
pachyderm_1   12/4/2011 12:43:41 PM
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I think one of the biggest reason is spice field, Magma really drives Synopsys nuts.

DataMuncher
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re: Synopsys to buy Magma for $507 million
DataMuncher   12/5/2011 6:53:22 AM
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@yalanand - I used HFSS for antenna design. Another guy 2 cubes over is using the former Apache stuff for chip integrity analysis. Ansys is pretty close to Cadence or Mentor in size, but also does mechanical analysis It seems like they have really bulked up on the electronics and semiconductor side with the addition of Ansoft and Apache.

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