Synopsys Completes Acquisition of WhiteHat Security

Rhea-AI Summary

Synopsys (NASDAQ: SNPS) has completed the acquisition of WhiteHat Security for $330 million in cash, enhancing its application security SaaS capabilities. This acquisition adds WhiteHat's dynamic application security testing (DAST) technology to Synopsys’ portfolio, which is among the industry’s broadest. The integration is expected to be neutral to FY2022 non-GAAP earnings per share. Synopsys aims to leverage WhiteHat's expertise to accelerate the development of SaaS-based security testing solutions, reinforcing its mission to improve software security.

Positive

• Acquisition of WhiteHat Security for $330 million enhances Synopsys' application security portfolio.
• Integration of WhiteHat's DAST technology strengthens existing security solutions.
• Acquisition is expected to be neutral to FY2022 non-GAAP earnings per share.

Negative

• Potential integration challenges could lead to a loss of customers or key employees.

Acquisition Expands Application Security Software-as-a-Service Capabilities

MOUNTAIN VIEW, Calif., June 22, 2022 /PRNewswire/ -- Synopsys, Inc. (NASDAQ: SNPS) today announced that it has completed the acquisition of WhiteHat Security, a leading provider of application security Software-as-a-Service (SaaS). The addition of WhiteHat Security provides Synopsys with significant SaaS capabilities and market-segment-leading dynamic application security testing (DAST) technology to strengthen what is considered one of the industry's broadest application security testing portfolios. Synopsys and WhiteHat Security, which was acquired by NTT Security Corporation in 2019, share a vision for delivering SaaS-based security testing solutions and building security into the software development lifecycle.

Synopsys paid $330 million in cash and expects the acquisition to be roughly neutral to FY2022 non-GAAP earnings per share.

"WhiteHat Security helped pioneer SaaS delivery of application security testing and brings powerful technology and expertise into our application security portfolio," said Jason Schmitt, general manager of the Synopsys Software Integrity Group. "WhiteHat Security's DAST capabilities complement our strengths in static analysis, interactive analysis and software composition analysis, while their expertise in SaaS will accelerate our security testing SaaS capabilities. We are excited about the value this will create for our customers and welcome the WhiteHat Security team as they join us in our mission to build trust in the software that businesses depend on."

About the Synopsys Software Integrity Group

Synopsys Software Integrity Group provides integrated solutions that transform the way development teams build and deliver software, accelerating innovation while addressing business risk. Our portfolio of software security products and services is the most comprehensive in the world and interoperates with third-party and open source tools, allowing organizations to leverage existing investments to build the security program that's best for them. Only Synopsys offers everything you need to build trust in your software. Learn more at www.synopsys.com/software.

About Synopsys

Synopsys, Inc. (Nasdaq: SNPS) is the Silicon to Software™ partner for innovative companies developing the electronic products and software applications we rely on every day. As an S&P 500 company, Synopsys has a long history of being a global leader in electronic design automation (EDA) and semiconductor IP and offers the industry's broadest portfolio of application security testing tools and services. Whether you're a system-on-chip (SoC) designer creating advanced semiconductors, or a software developer writing more secure, high-quality code, Synopsys has the solutions needed to deliver innovative products. Learn more at www.synopsys.com

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, statements regarding the expected benefits of the transaction. Forward-looking statements are subject to both known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, among others:  Synopsys' ability to operate or integrate WhiteHat Security's assets and employees with its own successfully, which may include a potential loss of customers, key employees, partners or vendors; and uncertain customer demand and support obligations for SaaS and DAST solutions. Other risks and uncertainties that may apply are set forth in the Risk Factors section of Synopsys' most recently filed Quarterly Report on Form 10-Q. Synopsys assumes no obligation to update any forward-looking statement contained in this news release.

Editorial Contact:
Simone Souza
Synopsys, Inc.
650-584-6454
simone@synopsys.com

Investor Contact:
Lisa Ewbank
Synopsys, Inc.
650-584-1901
synopsys-ir@synopsys.com

View original content:https://www.prnewswire.com/news-releases/synopsys-completes-acquisition-of-whitehat-security-301573465.html

SOURCE Synopsys, Inc.

FAQ

What is the significance of Synopsys acquiring WhiteHat Security?

The acquisition enhances Synopsys' SaaS capabilities and expands its application security testing portfolio.

How much did Synopsys pay for WhiteHat Security?

Synopsys acquired WhiteHat Security for $330 million in cash.

What impact will the acquisition have on Synopsys' earnings?

The acquisition is expected to be roughly neutral to FY2022 non-GAAP earnings per share.

What technologies will Synopsys gain from the WhiteHat acquisition?

Synopsys will gain dynamic application security testing (DAST) technology, enhancing its overall security offerings.

When was the acquisition of WhiteHat Security completed?

The acquisition was completed on June 22, 2022.