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Synopsys pays less than expected for Avanti

Posted: 11 Jun 2002 ?? ?Print Version ?Bookmark and Share

Keywords:Synopsys? Avanti? Silvaco Int.?

Paying less than it expected when it announced its acquisition plans last December, Synopsys Inc. on Thursday (June 6) completed the purchase of Avanti Corp. for roughly $735 million in stock. Just prior to the completion, Avanti settled an outstanding lawsuit with Silvaco Int. for $20.5 million.

Synopsys originally expected to pay around $830 million for Avanti, based on their respective stock prices on Dec. 3. At that time, Synopsys also said it would pay $335 million for liability insurance to protect itself from a civil suit filed against Avanti by Cadence Design Systems Inc. But Synopsys chairman and CEO Aart de Geus said Synopsys only needs to pay $85 million for the insurance, which includes a $250 million deductible should Cadence win a civil settlement in the case.

Synopsys is completing the acquisition with about $120 million more cash than expected, chief financial officer Brad Henske said in a conference call. However, the acquisition's facilities closure costs are higher than anticipated, he said. Synopsys will pay roughly $70 million to close facilities, $15 million for severance, and $27.5 million in professional fees, Henske said.

Silvaco had originally filed its lawsuit against Meta Software Corp., which was acquired by Avanti in 1996. In the settlement, Avanti will pay $20.5 million to Silvaco, and the parties will ask the California courts to dismiss all pending claims.

Synopsys and Avanti shareholders voted earlier this week to approve the acquisition. In a briefing Tuesday (June 4), de Geus said the new Synopsys' flagship product would combine Synopsys' Physical Compiler and Avanti's Astro products.

? Richard Goering

EE Times

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