Nearly a month after Synopsys snapped security IP supplier Intrinsic ID, the Silicon Valley-based firm is reported to have reached closer to selling its software integrity group (SIG), which specializes in application security testing for software developers.
www.edn.com/, May. 06, 2024 –
Nearly a month after Synopsys snapped security IP supplier Intrinsic ID, the Silicon Valley-based firm is reported to have reached closer to selling its software integrity group (SIG), which specializes in application security testing for software developers.
A Reuters report published last week claims that a private equity consortium led by Clearlake Capital and Francisco Partners is in advanced talks to acquire the SIG unit for more than $2 billion, and the deal is anticipated to be announced as early as this week. Synopsys telegraphed the intention to divest its security software business late last year.
Synopsys CEO Sassine Ghazi told the press in March 2024 that around three dozen buyers had shown interest in the SIG unit, and the company was narrowing down the list of potential suitors to half a dozen. Synopsys board has already approved the initiation process for the sale of the SIG unit.
Synopsys has significantly grown its application security test business after acquiring software testing firm Coverity in 2014. Next year, it scooped software security vendor Codenomicon, followed by the acquisition of open-source security vendor Black Duck Software in December 2017.
In June 2021, Synopsys snapped application security risk management firm Code Dx, and a year later, it acquired WhiteHat Security to offer automated protection for web applications in production environments. So, while Synopsys has significantly grown its application security testing business over the years and is one of the key players in this market, why does it want to sell it now?