Electronic design automation and semiconductor IP software and services provider Synopsys has entered a definitive agreement to acquire Coverity, a development testing company whose products will enable Synopsys to develop code that’s more secure and of better quality.
Synopsys will pay around $375 million (€273 million) or $350 million (€255 million) net of cash acquired. It will also assume certain unvested stock options of Coverity employees.
In addition to helping Synopsys develop better code, the acquisition of Coverity also enables the company to enter a new market addressed to enterprise IT and independent software providers.
It’s worth noting that 9 of the top 10 software companies are already relying on the tools developed by Coverity.
Synopsys expects the newly acquired company to contribute with around $20-25 million (€14-18 million) to fiscal 2014 revenues. The transactions is expected to be completed in the company’s second fiscal quarter.