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David Vye, MWJ Editor
David Vye is responsible for Microwave Journal's editorial content, article review and special industry reporting. Prior to joining the Journal, Mr. Vye was a product-marketing manager with Ansoft Corporation, responsible for high frequency circuit/system design tools and technical marketing communications. He previously worked for Raytheon Research Division and Advanced Device Center as a Sr. Design Engineer, responsible for PHEMT, HBT and MESFET characterization and modeling as well as MMIC design and test. David also worked at M/A-COM's Advanced Semiconductor Operations developing automated test systems and active device modeling methods for GaAs FETs. He is a 1984 graduate of the University of Massachusetts at Dartmouth, with a concentration in microwave engineering.
Synopsys buys Magma
Synopsys will pay a premium of 28.5 percent over Magma's Wednesday closing price of $5.72. Including debt, the deal is valued at about $507 million.
"This acquisition will enable Synopsys to accelerate the delivery of the technology our customers need to keep the overall cost of design in check," Chief Executive Aart de Geus said in a statement.
Synopsys, which plans to fund the deal with a combination of cash and debt, expects it to modestly add to adjusted earnings per share in fiscal 2012.
Separately, Synopsys forecast first-quarter results ahead of analysts' expectations, as it sees higher demand for its services from makers of mobile devices and cloud computing and electronics companies.
For the quarter, Synopsys -- which competes with Mentor Graphics (MENT.O) and Cadence Design Systems (CDNS.O) -- expects adjusted earnings of 51-53 cents a share on revenue of $412-$420 million.
Analysts were expecting earnings of 46 cents a share, excluding items, on revenue of $389 million, according to Thomson Reuters I/B/E/S.
For the fourth quarter, the Mountain View, California-based company, which makes software that help design chips, earned 45 cents a share, meeting analysts' estimates.
Total revenue rose 4 percent to $390.5 million, while estimates were for $390.1 million.
The Magma stock rose 25 percent to $7.17 in extended trading, while that of Synopsys was slightly up at $28.01.