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Synopsys (SNPS) Completes Asset Acquisition From BISTel

Synopsys SNPS recently announced that it has completed the previously announced acquisition of semiconductor and flat panel display solutions from the South Korea based engineering equipment systems and artificial intelligence (“AI”) applications provider, BISTel. Announced in June, the financial terms of the deal have been kept under wraps. Synopsys stated that the purchase isn’t material to its financials.

The acquisition is likely to broaden Synopsys’ industry-leading process control solutions with adaptive intelligence capabilities required by semiconductor fabs for enhancing manufacturing quality and efficiency.

The buyout also adds a team of experienced engineers. This team of engineers will help in accelerating technology development using real-time manufacturing predictive analysis.

Advised by the international law firm, Hogan Lovells, the buyout will offer smart manufacturing solutions, high quality wafer fab operations and enhanced efficiency to Synopsys.

Acquisitions: A Key Growth Driver

In recent years, acquisitions have been crucial to Synopsys’ growth. In June this year, the company completed the buyout of Code Dx with an aim to provide customers with risk reporting capabilities across correlated software vulnerability data. This purchase expanded its security applications portfolio.

In May, it purchased MorethanIP, an Ethernet Digital Controller IP supporting data rates provider, to expand its DesignWare Ethernet Controller IP portfolio. With the buyout, the company will be able to provide its customers a complete low-latency, high-performance Ethernet IP solution for networking, AI, and cloud computing SoCs (system on a chip).

In November last year, Synopsys bought Moortec, an in-chip monitoring solutions provider, for an undisclosed amount. The acquisition helped the company enhance its capabilities and strengthen the firm’s position in the Silicon Lifecycle Management Platform.

Synopsys is likely to pursue more acquisitions that strategically align with its current offerings. Along with investments in research & development, the buyouts are likely to strengthen the firm’s product offerings and clientele over the long run.

Zacks Rank & Stocks to Consider

Synopsys currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Avnet AVT, PTC PTC and Shopify SHOP, all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Avnet, PTC and Shopify is currently pegged at 25.4%, 23.2% and 25%, respectively.


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