Chip-Design Market Consolidation ContinuesChip-Design Market Consolidation Continues
Synopsis buys Numerical Technologies for $250 million.
Consolidation is happening in the chip-design software market, as evidenced by integrated circuit-design software vendor Synopsis Inc.'s acquisition of Numerical Technologies Inc., which makes sub-wavelength optical lithography technologies.
The deal, valued at $250 million, will help Synopsis keep a competitive edge as chip designs continue to shrink toward the 65-nanometer mark, says Aart de Geus, chairman and CEO of Synopsis. Numerical makes integrated circuits with components smaller than the wavelength of light that's used to create circuit patterns on silicon, and integrating that technology into Synopsis' electronic-design tools will help Synopsis create smaller, faster, and more powerful chips, he says.
Numerical had 2002 revenue $46.8 million, a decrease of 5% from the prior year, and posted a net loss of $65.2 million. Synopsis agreed to purchase the company for $7 per share.
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