October 12, 2004 – Synopsys Inc. has executed an agreement to acquire Integrated Systems Engineering AG (ISE), a provider of technology CAD (TCAD) software products and services. The acquisition price is approximately $95 million, net of cash estimated to be held by ISE at closing, plus a three year earnout based on product line performance and employee retention, with a maximum potential earnout payment of $20 million.

The acquisition will be made by way of a cash tender offer to all ISE stockholders and option holders. The transaction is expected to close in November and is subject to the condition that 90% or more of ISE shares be tendered in the offer and other customary closing conditions.

ISE is a privately held company headquartered in Switzerland with principal offices in Zurich and San Jose, California. Synopsis said that TCAD tools are a critical part of an overall design-for-manufacturing (DFM) solution as they precisely simulate advanced semiconductor processes down to the atomic level before they are put into production.