Chip-design software maker Synopsys Inc agreed to purchase peer Magma Design Automation Inc for $7.35 a share in cash, to add complementary technology offerings to its portfolio, and forecast a strong first quarter.Synopsys will pay a premium of 28.5 percent over Magma's Wednesday closing price of $5.72. Including debt, the deal is valued at about $507 million."This acquisition will enable Synopsys to accelerate the delivery of the technology our customers need to keep the overall cost of design in check," Chief Executive Aart de Geus said in a statement.Synopsys, which plans to fund the deal with a combination of cash and debt, expects it to modestly add to adjusted earnings per share in fiscal 2012.
Magma Design Automation, Inc. (Magma), provides electronic design automation (EDA) software products and related services. Shares of LAVA traded higher by 3.06% or $0.17/share to $5.72. In the past year, the shares have traded as low as $4.03 and as high as $8.50. On average, 765203 shares of LAVA exchange hands on a given day and today's volume is recorded at 2884061.
Shares of SNPS traded higher by 3.44% or $0.93/share to $27.97. In the past year, the shares have traded as low as $21.37 and as high as $29.35. On average, 1115310 shares of SNPS exchange hands on a given day and today's volume is recorded at 1863483.
