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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: randy kay who wrote (12522)	10/22/1997 11:42:00 AM
From: randy kay	Respond to of 50167

J.T. AHA!! Here's what's up with BOTH of these companies. It's funny because I was just doing a global scan and they both jumped out, turns out they're in it together. Randy Wednesday October 15 8:37 PM EDT FOCUS-Synopsys to buy rival Viewlogic for $497 million MOUNTAIN VIEW, Calif., Oct. 15 (Reuters) - Synopsys Inc., expanding its expertise in electronic design software, said Wednesday it agreed to buy rival Viewlogic Systems Inc. for about $497 million in stock. Both companies write software that help electrical engineers design and test the circuits of computer chips and systems. The transaction would make Synopsys the world's second largest electronics design software firm and would expand its product line to include almost every tool engineers need to design the guts of computers. ''This merger will be positive for Synopsys as there is good product synergy between the two combined companies,'' said Jennifer Smith, analyst at BancAmerica Robertson Stephens in San Francisco. Under terms of the transaction, Synopsys would pay 0.6521 of its shares, or about $28, for each of Viewlogic's 17.75 million shares outstanding. Synopsys said it expects the acquisition to increase its earnings and cut operational expenses. Shares of Synopsys, based in Mountain View, Calif., slipped $3.125 to $39.813, while Viewlogic shares jumped $2.688 to $25.188, both on Nasdaq. The electronic design automation industry is rapidly consolidating into a handful of companies. Previously, chip designers like Intel Corp., Motorola Inc. and Texas Instruments Inc. would have to buy several design products from different companies. But as the complexity of computer electronics grows exponentially year after year, engineers are demanding a single suite of products to handle every aspect of a design project, said Paul Lippe, Synopsys vice president of business and market development. ''We're going after technology leadership to make sure we can solve our customers problems,'' Lippe said. Synopsys will close some of Viewlogic's facilities, but likely will not reduce headcount, the company said. Viewlogic, based in Marlboro, Mass., will become a subsidiary of Synopsys. Lippe said he does not expect any antitrust objections from federal regulators. The transaction is expected to be completed by the end of the year.