In the second acquisition announced this week by a major electronic design automation company, Synopsys Inc. (NASDAQ:SNPS) said it would acquire the analog semiconductor design unit of MIPS Technologies Inc. (NASDAQ:MIPS) for $22 million.
Synopsys said the deal would boost its intellectual property offerings for chip designers in the areas of analog chip design and interfaces. MIPS said the transaction will enable it to focus on its core microprocessor IP business and build its position in digital home and networking technologies.
The deal marks the final chapter of a disastrous acquisition for MIPS. It acquired the analog business group via its 2007 purchase of Chipidea Microelectronica SA, for which it paid $147 million. MIPS last year wrote off a large portion of the goodwill and intangible assets associated with the acquisition.
The Synopsys deal follows the announcement Thursday by Mentor Graphics Corp. (NASDAQ:MENT) that it would pay $13 million to acquire LogicVision Inc. (NASDAQ:LGVN). - Olaf de Senerpont Domis