Synopsys has signed a definitive agreement to acquire Magma Design Automation, a provider of chip design software headquartered in San Jose, California . Under the terms of the merger agreement, Synopsys will acquire Magma for $7.35 per Magma share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired.

Magma Design Automation reported revenue of $139.3 million for its 2011 fiscal year and a net loss of $3.3 million. Synopsys ended 2011 with a turnover of 1.536 billion US$ and a net profit of 221.4 million US$.