Karishma Vanjani
The semiconductor-design software provider Synopsys is selling its software -integrity unit to two private-equity companies, potentially boosting its cash profile.
Clearlake Capital and Francisco Partners are buying Synopsys' security-testing software business for $2.1 billion, including up to $475 million in cash payable when certain conditions are met.
The transaction, approved by the board, is expected to close in the second half of the year, following regulatory approvals. The business will be a newly independent, privately held company after the transaction closes.
Synopsys stock was trading flat after the announcement. The stock has gained 45% over the past year.
In March, the California company said it expected to generate roughly $1.1 billion in free cash flow in fiscal 2024, which ends in October. That would mark a decline from the amounts of cash generated in the past three fiscal years.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com.
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(END) Dow Jones Newswires
May 06, 2024 10:29 ET (14:29 GMT)
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