Synopsys Sells Off Software Integrity Division

The Six Five team discusses Synopsys sells off Software Integrity Division.

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Transcript:

Daniel Newman: Synopsys has been on fire growing across the board, doing this huge deal with Ansys Aptiv, but they are also doing some divestitures to make way for the growth in their focus areas.

Patrick Moorhead: Yeah, they are. So listen, EDA, I think in 10 years the power players are going to be EDA, ichip IP providers and foundries. Doesn’t mean that chip providers are going away, but they’re going to be a lot of other new options. I think the traditional chip makers will expand their portfolios because these EDA tools are just off the rail. And EDA is not just for chips, it’s also for systems. And you can imagine a company like Tesla who not only does their own chips but does their own cars and everything in between. The ability to use a tool to not only simulate but also build all of these different pieces of the ecosystem, a huge opportunity. So in this spirit and Sassine, the CEO, there-

Daniel Newman: Will also be on the podcast, The Six Five, buddy, by the way.

Patrick Moorhead: Exactly. And it’s funny, I’ve met him over video. I’ve never met him face-to-face like you Daniel, but-

Daniel Newman: Good-looking guy.

Patrick Moorhead: I hope to in the future. Daniel, maybe you can put in a good word for me to the powers over there. But yeah, they sold the unit to Clearlake for $2.1 billion. But I mean these are bold moves and some people thought EDA was sleepy, but Sassine right comes in and you’ve got this huge Ansys acquisition like you mentioned, and you have to divest to focus. And while there was a lot of value in the software integrity unit, I don’t think it was core to the business