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Synopsys acquires Springsoft – thesis dead
Brian Bailey
8/3/2012 10:01 AM EDT
Some of you know or may have read a thesis of mine regarding the emerging middle class of EDA whereby the big three had stopped buying startups and that there would likely be consolidation in the middle of EDA. Many companies in the industry have grown to be stable, profitable businesses and at DAC I had started to do interviews with several companies about the impact it would have on them.
Over the past few weeks a couple of executives had told me that my thesis was wrong and what was happening was that it was just taking longer. Companies needed to reach more maturity than they had in the past. Kathryn Kranen, CEO of Jasper told me that it was much easier for the big three to digest in larger chunks than startups. Today we see Synopsys taking another large chunk in the form of Springsoft.
The price tag on this one is $305 in cash (net of cash in hand) which shows that Synopsys still believes their stock to be undervalued. They expect the deal to close in first quarter 2013
So now Synopsys is simultaneously digesting Magma, Ciranova and Springsoft. I hope they don’t get indigestion! Maybe this is why Synopsys needed co-CEOs
Brian Bailey – keeping you covered
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