Synopsys announces intent to acquire Black Duck Software
Synopsys has announced it intends to acquire Black Duck Software for approximately $565 million, or $548 million net cash. According to a company press release, the transaction will be funded by U.S. cash, is subject to Hart Scott Rodino regulatory review and expected to be closed by the end of the year.
Black Duck was originally founded in 2003, and is known for its management and security of open source solutions. The company leverages automation to keep tabs on open source components, sending out automated alerts for vulnerabilities impacting open source code.
Synopsys, on the other hand, was founded in 1986 and is recognized as the 15th largest software company in the world. The business is best known for its electronic design automation (EDA) software, which enables customers to create and verify silicon chips. Synopsys said it generated more than $2.4 billion revenue in 2016. With the deal, the company hopes to cast a wider net with respect to its customer base.
As part of the acquisition, about 400 Black Duck employees will join forces with the California-based Synopsys team. Synopsys intends to use Black Duck’s security software to provide its computers with greater visibility with respect to open-source usage, applications and potential security threats.
“Our vision is to deliver a comprehensive platform that unifies best-in-class software security and quality solutions,” said Andreas Kuehlmann, senior vice president and general manager of the Synopsys Software Integrity Group. “Development processes continue to evolve and accelerate, and the addition of Black Duck will strengthen our ability to push security and quality testing throughout the software development lifecycle, reducing risk for our customers.”
Synopsys is particularly interested in Black Duck’s open source solutions. Several Synopsys’ customers design embedded systems, many of which have grown attracted to open source to reduce costs, and pump out products and services quicker. Unfortunately, the speed of product design can compensate security. The acquisition of Black Duck will provide Synopsys customers with the knowledge to pinpoint where open source assets have been used, review the security threat and make patches wherever necessary.
“We’re excited to join an organization that shares our commitment to addressing security and quality issues at the earliest phases of the software development process,” said Lou Shipley, chief executive officer of Black Duck. “Doing so will enable us to provide leading solutions that enable customers to develop and deliver more secure and higher-quality software faster than ever before.”