By Chris Wack


Synopsys is selling its Software Integrity Group business to Clearlake Capital Group and Francisco Partners in a transaction with a total value of up to $2.1 billion.

The transaction price includes up to $475 million in cash payable upon Francisco Partners and Clearlake achieving a specified rate of return in connection with one or more liquidity transactions.

The company said $1.5 billion will be payable at closing, with $125 million payable in five equal installments after the 75th day following the closing.

The existing Software Integrity Group management team is expected to lead the newly independent, privately held company after the transaction closes. The name of the new standalone entity will be announced at a later date.

The transaction is currently expected to close in the second half of 2024.

In January, Synopsys said it was buying Ansys in a $35 billion cash-and-stock deal, expected to close in the first half of 2025.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

05-06-24 0943ET