Synopsys Acquires Target Compiler Technologies

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A vendor of electronic design automation (:EDA) software, Synopsys Inc. (SNPS) recently completed the acquisition of Target Compiler Technologies. The company’s solutionswill strengthen Synopsys’ existing business and enhance its capabilities. Financial details of the deal were not available.

Target Compiler Technologies is a Belgian developer of software tools for designing and programming application-specific instruction-set processors (ASIPs). ASIPs are part of an evolving design model that consists of custom integrated circuitry.Thisintegrates into a programmable processor core andhelps to increase productivity and operational efficiency.

With the acquisition of Target Compiler Technologies, Synopsys will be able to enhance its ASIP portfolio, helping to increase the performance, power and flexibility of its solutions. The acquisition will also bring on board key personnel.

Target's IP Designer, IP Programmer and MP Designer software tools are perfect for developing ASIPs with improved flexibility and efficiency and can be used for the development of next-generation System on Chips (SoCs).

Additionally, the integration of Target Compiler Technologieswill also provide the company a competitive advantage over its peers such as Mentor Graphics Corp. (MENT) and Advent Software (ADVS).

Apart from this, Synopsys’s collaboration with ARM Holdings plc (ARMH) is expected to optimize the performance of its processors. Collaborations with other intellectual property (IP) suite providers have also helped the company strengthen its product portfolio and improve the design quality of its custom integrated circuits.

We are positive that the company’s recent product launches, acquisitions and deal wins thatwill boost results, going forward.Moreover, the unique intellectual properties and global support provided by Synopsys will likely drive forthcoming results. The company has a good cash reserve that is necessary for funding further acquisitions.

However, a challenging technology spending environment and uncertainty regarding proper time to realize acquisition synergies are headwinds.

Currently, Synopsys has a Zacks Rank #3 (Hold).

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