Magma Design Automation
| Company type | Public |
|---|---|
| Industry | Electronic design automation (EDA) |
| Founded | 1997 |
| Founder | Rajeev Madhavan |
| Defunct | 2012-02-22 |
| Fate | Acquired by Synopsys |
| Headquarters | San Jose, California , United States |
Area served | North America, Europe, Asia |
Key people | Rajeev Madhavan (Chairman, CEO, President), Roy Jewell (COO, President) |
| Products | Software tools for integrated circuit design (synthesis, placement and routing, power optimization, circuit simulation, verification, analog/mixed-signal design) |
| Website | www |
Magma Design Automation operated as a software firm within the electronic design automation (EDA) sector. Established in 1997, its main office was located in San Jose, California, with additional operations spanning North America, Europe, and Asia. The company developed software tools that facilitated critical phases of integrated circuit design, such as synthesis, placement and routing, power optimization, circuit simulation, verification processes, and analog/mixed-signal design.
In a transaction completed on February 22, 2012, Synopsys acquired Magma through a merger valued at around $523 million, equating to $7.35 per share.
History
Founded in 1997 by a team including Rajeev Madhavan—who held the roles of chairman, CEO, and president from the beginning—Magma initially competed primarily with Cadence and Avanti Corporation in physical design solutions. Over time, it broadened its product range to contend with all leading EDA providers: Cadence, Mentor Graphics, and Synopsys. The company established a significant presence in the convergence device market segment, securing major clients like Qualcomm, Broadcom, and Texas Instruments. Roy Jewell joined as chief operating officer in 2001 and subsequently assumed the position of president.
Magma launched its initial public offering on Nasdaq under the ticker symbol LAVA on November 20, 2001—making it the final EDA company to go public—and achieved its highest annual revenue of $214.4 million during fiscal year 2008. By revenue metrics, it ranked as the fourth largest entity within the EDA industry.
In 2002, Magma earned a spot on the Red Herring 100 list for its innovation and strategic business approach. Forbes placed the company second among the fastest-growing technology firms in 2005.
Patent Dispute
Beginning in September 2004, Magma became embroiled in litigation initiated by Synopsys over alleged infringement of two patents. This dispute expanded into multiple lawsuits across courts in California and Delaware involving several patent claims. The parties resolved all legal matters on March 29, 2007; Magma agreed to pay Synopsys $12.5 million while both companies granted each other licenses to four patents that had been under contention.
Synopsys Acquisition
On November 30, 2011, Magma and Synopsys revealed a definitive agreement whereby Synopsys would purchase Magma for $507 million. The deal was finalized on February 22, 2012, with an overall cash transaction valued near $523 million or $7.35 per share of Magma stock.