Black Duck Software, a 15-year-old company whose products automate the process of securing and managing open-source software — including detecting license compliance issues — is being acquired by Synopsys, the publicly traded maker of semiconductor-design software.
Under the terms of the definitive agreement, 31-year-old Synopsys will pay approximately $565 million, or $548 million net of cash acquired, meaning the cash on Black Duck’s balance sheet has been subtracted from the purchase price.
Additionally, Synopsys says it will assume certain unvested equity of Black Duck employees.
It’s a cash transaction.
The deal, expected to close next month, reflects the shift in how enterprises buy and deploy software, with software that’s open to change and free to adopt no longer the exception but the rule. In fact, the open-source software now makes up more than 60 percent of the code in today’s applications. Synopsys is buying Black Duck to strengthen its ability to push security and quality testing throughout its software’s development lifecycle, reducing the risk for its customers.