June 11, 2010 (FinancialWire) — Synopsys, Inc. (NASDAQ: SNPS), a provider of software and IP for semiconductor design, verification and manufacturing, said it has signed a definitive agreement for Synopsys to acquire Virage Logic Corp. (NASDAQ: VIRL), a provider of semiconductor intellectual property for the design of integrated circuits.

Under the terms of the agreement, Synopsys will pay $12 cash per Virage Logic share, resulting in a transaction value of around $315 million, or around $289 million net of cash acquired.

The company said that Virage Logic's offering will complement its DesignWare interface and analog IP portfolio by adding embedded memories with test and repair, non-volatile memories, standard cell libraries, and programmable cores for control and multimedia sub-systems.

With the acquisition, Synopsys said it will strengthen its ability to help design teams achieve their system-on-chip development goals by providing them with a more comprehensive portfolio of production-proven IP and worldwide technical support.

The boards of directors of both companies have approved the transaction, and Virage Logic President and CEO Alex Shubat will join Synopsys. After the closing, Virage Logic will become part of Synopsys, and Virage Logic stock will cease trading.

California-based Synopsys said that the transaction is scheduled to close in the fourth quarter of Synopsys' fiscal 2010. Synopsys anticipates the transaction to be neutral to non-GAAP earnings per share in fiscal 2010, and accretive in fiscal 2011.

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