The terms of Synopsys' deal have not been disclosed by the company, save for the fact that they are "not material to Synopsys financials…" Furthermore, the transaction is currently subject to regulatory filings and meeting closing conditions. Everything is expected to be finalised by Q4 fiscal year 2019.
Manor Gandhi, general manager of the Synopsys Verification Group, said, "With the acquisition of QTronic, we are strengthening our position as the leader in virtual prototyping solutions and will continue to deliver powerful virtual development and test solutions that enable automotive companies to develop vehicle software earlier, faster, and better."
The Growing Demands of Automotive Companies
This deal comes at a time when automotive companies are increasingly looking to accelerate the development, testing, and deployment of complex software-defined automotive electronics systems.
Relying on semiconductors and OEMs, Synopsys hopes to fill a major gap in the market. Automotive companies and their suppliers are developing futureproof systems and solutions that cover everything from batteries to advanced driver-assistance systems. Their acquisition of QTronic will allow Synopsys to position itself as a market leader for software-defined automotive systems.
A Tesla model Y vehicle, a good example of an automobile that relies heavily on electronic components. Image courtesy of Tesla.
Monopolizing the Electronic Supply Chain
The market for automotive electronics has seen steady growth in tandem with the growth of smarter vehicles. As these vehicles become more accessible to consumers, the demand for electronic components that power them will skyrocket.
Synopsys' move to enter the automotive electronics market could be seen as an attempt to get in early and monopolize it.
What is Synopsys?
Synopsys, Inc. (Nasdaq: SNPS) is an American integrated systems design company. Founded in 1986, Synopsys primarily manufactures tools used in the design of application-specific ICs. It is the world's 15th-largest software company and a Silicon to Software partner for major electronics manufacturers.
What is QTronic?
QTronic GmbH was established in 2006. The company is a leading provider of tools for virtual validation of automotive software tools. QTronic's 'Silver' technology, arguably the primary reason why Synopsys is so eager to acquire the German software company, enables simulation models to run on developers' Windows PCs rather than on physical prototype vehicles.
This not only aids the development and testing process by making it more efficient but also protects developers' intellectual property because it eliminates the need to disclose source code so that it can be implemented and tested on vehicle prototypes.
QTronic's simulation and test tool will help Synopsys deliver a comprehensive solution for virtual automotive prototyping throughout the automotive electronic supply chain.