Synopsys to Acquire Full Stake in Taiwan’s Springsoft for NT$12.2 B.

Taipei, Aug. 13, 2012 (CENS)--The U.S.-based Synopsys Inc., the world’s largest EDA (electronic design automation) solution provider, will acquire a 100% stake in its Taiwanese counterpart, Springsoft Inc., for NT$12.2 billion, or NT$57 per share via its subsidiary, with the unit price 25% higher than the closing price of NT$45.65 in Taiwan’s stock exchange market on August 2.

The acquisition is scheduled to be completed at the end of January, 2013, when Springsoft, which now commands less than 5% in its share of the global market for EDA solutions, will be delisted from Taiwan’s stock exchange market to become one of Synopsys’ wholly-owned subsidiaries overseas.

Market observers pointed out that Synopsys is inspired to acquire Springsoft by the latter’s technological competitiveness, given the fact that Springsoft is Taiwan’s sole supplier of automated debug tools for EDA systems. Noteworthily, three years ago, the U.S. company unseated its domestic peer, Cadence, to become the world’s largest EDA supplier mainly by acquiring smaller counterparts worldwide.

Martin Lu, chairman of Springsoft, said that the acquisition will help his company to better compete in the segment, as upstream EDA suppliers have to brainstorm how to satisfy downstream customers of IC designers and wafer foundries with faster and more effectively EDA solutions, especially at a time when development of IC design and wafer fabrication has been moving forward from 28-nanometer process to 20-nanometer nowadays.

Springsoft is now the world’s largest supplier of automated debug tools for EDA systems, which command a 66% share of its software sales presently, and posted revenue of NT$1.223 billion for the second quarter of this year, with first-half EPS (earnings per share) of NT$1.5.