Editing Magma Design Automation

{{Short description|Former electronic design automation company}}
{{Use American English|date = April 2019}}
{{Infobox company |
 name = Magma Design Automation |
 image = Magma headquarters Santa Clara 2003 to 2007.jpg |
 image_caption = Headquarters at [[Santa Clara, California]] |
 logo = MagmaDALogo.png |
 type = [[public company|Public]] |
 founded = {{Start date and age|1997|04|01}} in [[Mountain View, California]]|
 hq_location = [[San Jose, California]]|
 founder = {{Unbulleted list|Lukas van Ginneken|[[Rajeev Madhavan]]|Hamid Savoj|Karen Vahtra}}| 
 key_people = {{Unbulleted list|[[Rajeev Madhavan]] ([[Chief executive officer|CEO]])|Roy Jewell, President}}|
 num_employees = 696 (1 May 2011)|
 industry = [[Software & Programming]]|
 defunct = {{End date|2012|02|22}}|
 fate = Acquired by [[Synopsys]]|
 revenue = $139.3 million [[United States dollar|USD]] (FY 2011)|
  homepage = [http://www.magma-da.com www.magma-da.com]
}}
'''Magma Design Automation''' was a [[software]] company in the [[electronic design automation]] (EDA) industry. The company was founded in 1997 and maintained headquarters in [[San Jose, California|San Jose]], [[California]], with facilities throughout North America, Europe and Asia. Magma software products were used in major elements of [[integrated circuit design]], including: synthesis, placement, routing, power management, [[circuit simulation]], verification and analog/mixed-signal design.

Magma was acquired by [[Synopsys]] in a merger finalized February 22, 2012 at a cash value of about $523 million, or $7.35 per share.<ref>"Synopsys Completes Acquisition of Magma Design Automation,” February 22, 2012 [http://www.prnewswire.com/news-releases/synopsys-completes-acquisition-of-magma-design-automation-140013533.html]</ref>

==History==
Magma was founded in 1997 by a team including Rajeev Madhavan, who was chairman, CEO and president from the company's inception.<ref>Securities and Exchange Commission Form S-1, Amendment No. 7, November 19, 2001, (page 49) [http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1594409]</ref> The company initially competed primarily with [[Cadence Design Systems|Cadence]] and [[Synopsys#Avanti Corporation|Avanti Corporation]] in physical design but eventually broadened its product portfolio and competed with all three of the largest established EDA companies: [[Cadence Design Systems|Cadence]], [[Mentor Graphics]] and [[Synopsys]].<ref>[http://www.aycinena.com/index2/template.html?index3/archive/fathers%20and%20sons%20-%20rhines%20&%20madhavan EDA Confidential, July 14, 2005]</ref> Magma had a particularly strong presence in the convergence device segment through key customers such as Qualcomm, Broadcom and Texas Instruments.<ref>[http://www.sramanamitra.com/2009/03/24/eda-industry/ “EDA Industry Update,” March 24, 2009]</ref> In 2001 Roy Jewell joined Magma as chief operating officer and later that year added the title of president.<ref>Securities and Exchange Commission Form S-1, Amendment No. 7, November 19, 2001, (page 49) [http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1594409]</ref>

Magma completed an initial public offering on Nasdaq, under the ticker symbol LAVA, on November 20, 2001<ref>[https://money.cnn.com/2001/11/20/ipo/magma/ “Magma IPO up 46%”, CNN Money, November 20, 2001]</ref> — the last EDA company to go public<ref>[http://seekingalpha.com/article/270075-the-first-eda-ipo-in-a-decade-apache-design-solutions "The First EDA IPO in a Decade," Seeking Alpha, May 16, 2011]</ref> — and achieved its peak annual revenue of $214.4 million in its 2008 fiscal year.<ref>“Magma Reports Revenue of $214.4 million for Fiscal 2008, 20.4 Percent above Prior Year,” May 1, 2008 at SEC archive [https://www.sec.gov/Archives/edgar/data/1065034/000119312508099128/dex991.htm]</ref> Magma was the fourth largest EDA company by revenue.<ref>Based on Annual Reports on Form 10-K filed with U.S. Securities and Exchange Commission</ref>

In 2002 Magma was named to the Red Herring 100 for innovation and business strategy.<ref>“Magma Named to the Red Herring 100; Recognized by Red Herring Editors for Innovation and Business Strategy,” May 13, 2002 [http://www.thefreelibrary.com/Magma+Named+to+the+Red+Herring+100%3B+Recognized+by+Red+Herring+Editors...-a085888783]</ref> In 2005 Forbes ranked Magma No. 2 on its list of fastest-growing technology companies.<ref>[https://web.archive.org/web/20050209112851/http://www.forbes.com/free_forbes/2005/0214/100.html “Technology’s Growth Champs,” Forbes, February 14, 2005]</ref>

===Patent Dispute===
Magma was involved in a legal dispute with Synopsys beginning in September 2004, when Synopsys sued Magma for allegedly infringing two patents.<ref>”Synopsys sues Magma for patent infringement,” EE Times, September 17, 2004 [http://www.eetimes.com/document.asp?doc_id=1268353]</ref> Claims and counter-claims accelerated, resulting in separate court cases in California and Delaware, and a number of disputed patents. On March 29, 2007, Magma and Synopsys announced the companies had agreed to settle all pending litigation between them. As part of the settlement Magma made a $12.5 million payment to Synopsys and each company cross-licensed four previously disputed patents to the other.<ref>[http://www.eetimes.com/document.asp?doc_id=1165714 ”Patent resolution removes cloud over Magma,” EE Times, March 30, 2007]</ref>

==Synopsys Acquisition==
On November 30, 2011, Magma and [[Synopsys]] announced they had entered into a definitive agreement by which Synopsys would buy Magma for $507 million US$.<ref>{{cite web |title=Synopsys to buy Magma for $507 million |author=Dylan McGrath |publisher=EETimes |date=30 Nov 2011 |url=http://www.eetimes.com/electronics-news/4231034/Synopsys-to-buy-Magma-for--507-million }}</ref> The merger was finalized on February 22, 2012, with cash value of the transaction at about $523 million, or $7.35 per Magma share.<ref>"Synopsys Completes Acquisition of Magma Design Automation,” February 22, 2012 [http://www.prnewswire.com/news-releases/synopsys-completes-acquisition-of-magma-design-automation-140013533.html]</ref>

==References==
{{Reflist}}

==External links==
*[http://www.magma-da.com/ Magma homepage]

{{Programmable Logic}}

[[Category:Electronic design automation companies]]
[[Category:Companies based in San Jose, California]]
[[Category:Companies established in 1997]]
[[Category:Defunct software companies of the United States]]