A very nice premium for newer Nassda shareholders. There have been others, bought out to resolve litigation. I like the fact currently, both stocks are on the rise. Witch usually means Wall Street like the deal currently.
Synopsys to Buy Nassda, Settle Lawsuit
Wednesday December 1, 9:49 am ET
Synopsys to Buy Nassda in $192 Million All-Cash Deal, Settles Patent Infringement Litigation
MOUNTAIN VIEW, Calif. (AP) -- Synopsys Inc., a maker of software used in designing semiconductors, on Wednesday said it agreed to buy software maker Nassda Corp. in an all-cash deal totaling $192 million.
The news sent Nassda shares up $2.55, or 59.6 percent, to $6.83 in early trading on the Nasdaq, where Synopsys shares rose 42 cents to $18.05.
The transaction calls for Synopsys to pay $7 for each Nassda share and settles all outstanding patent infringement litigation by Synopsys against Nassda, which makes chip circuit verification software, and certain of its employees. Upon closing, the Nassda officers, directors and employees named in the lawsuit will make settlement payments to Synopsys of $61.6 million.
The acquisition is subject to approval by Nassda's majority holders. Certain directors, officers and employees who own about 60 percent of Nassda's outstanding shares have agreed to vote in favor of the deal.
Related to the settlement, Santa Clara, Calif.-based Nassda will record a one-time charge of about $67.5 million in the quarter ended Sept. 30, adjusting that quarter's results to a loss of $67.3 million, and the full fiscal year's results to a loss $64.9 million. On Oct. 19, the company reported net income of $175,000 for the quarter and $2.6 million for the year.
"This acquisition successfully resolves the litigation between our two companies and sends a strong message of Synopsys' commitment to protecting and preserving its intellectual property," Synopsys vice president and general counsel Rex Jackson said in a release. "By acquiring Nassda rather than continuing through the courts, Synopsys can preserve Nassda's products and continue long-term support of Nassda's customers."
Deutsche Bank Securities Inc. acted as exclusive financial adviser to the special committee of Nassda's board of directors in this transaction.
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