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Synopsys to settle litigation by acquiring Nassda

Posted: 06 Dec 2004 ?? ?Print Version ?Bookmark and Share

Keywords:synopsys? eda? nassda?

In a move that promises to end a long-running lawsuit, Synopsys Inc. is set to acquire rival EDA vendor Nassda Corp. for $192 million in a cash deal, Synopsys said Wednesday (Dec. 1).

However, in net terms the deal is going to cost Synopsys considerably less.

The deal is priced at $7 per share, and the aggregate purchase price is approximately $92 million, a net total based on Nassda's own estimated cash holdings at closing of about $100 million. Once the deal is closed, Nassda executives, directors and employees who are defendants in the litigation between Synopsys and Nassda have agreed to make settlement payments to Synopsys in the aggregate amount of $61.6 million.

The deal, subject to the acquisition's closing, is intended to settle all outstanding litigation by Synopsys against Nassda and its officers, directors and employees, Synopsys said.

Synopsys filed suit in August 2001 alleging that former Synopsys employees who founded Nassda stole Synopsys trade secrets to create Nassda's flagship simulator, HSIM. Synopsys won a partial ruling against Nassda in September 2003.

A series of court rulings issued by Santa Clara County Superior Court in June 2004 found that Nassda had been guilty of stealing trade secrets, Synopys claimed at the time. Synopsys was also pursuing Nassda for patent infringement.

"This acquisition successfully resolves the litigation between our two companies and sends a strong message of Synopsys' commitment to protecting and preserving its intellectual property," said Rex Jackson, vice president and general counsel of Synopsys, in a statement. "By acquiring Nassda rather than continuing through the courts, Synopsys can preserve Nassda's products and continue long-term support of Nassda's customers." The definitive agreements for the acquisition have been approved by the boards of both Synopsys and Nassda, as well as by a special committee of Nassda's board. The acquisition is also subject to customary regulatory approvals and other closing conditions.

- Peter Clarke

Silicon Strategies

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