Application Security

09:40 AM

Synopsys to Buy Black Duck Software for $565 Million

The acquisition signifies the growth of open source software and need to secure software early in development.

Synopsys, a firm focused on silicon chip design and application security testing, will acquire Black Duck Software, which builds products to automate the process of securing and managing open source software. The acquisition will be funded in cash and is expected to close in December.

As part of the deal Synopsys will pay $565 million, or $548 million of cash acquired, and assume certain unvested equity of Black Duck employees.

This transaction is another sign software development is shifting to open source, which has grown due to its lower development cost and quick speed to market. However, poor visibility into open source software (OSS) has businesses concerned about security and compliance.

OSS makes up 60% or more of code in today's applications, Synopsys reports in a release. It seems Synopsys is planning to leverage Black Duck's technology, which scans open source code for security vulnerabilities and compliance issues, to stay ahead of the game in software security.

Read more details here.

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