Filing Flows › Synopsys (SNPS) › Takeover & LBO
Is Synopsys (SNPS) a takeover target?
A leveraged buyout at today's price plus 30% ($588.09 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $280.80 a share (−38% against today's $452.38). At $119.5B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 3.5% of companies with its figures were bought within a year (0.7× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $588.09 | today's $452.38 plus 30% |
| × shares | 192.3 million | |
| = Equity value | $113.1B | |
| + Debt refinanced | $10.0B | |
| − Cash | $3.6B | |
| + Other claims | −$1.2M | preferred stock, minority interests |
| = Enterprise value | $119.5B | 45.7× EBITDA of $2.6B |
| Fees | $2.4B | 2% of the price |
| New debt | $14.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $107.5B | 88% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $10.2B | $2.8B | $1.1B | $1.4B | $12.9B |
| Year 2 | $10.9B | $3.0B | $989M | $1.7B | $11.2B |
| Year 3 | $11.5B | $3.2B | $857M | $2.0B | $9.2B |
| Year 4 | $11.9B | $3.3B | $703M | $2.3B | $6.9B |
| Year 5 | $12.3B | $3.4B | $529M | $2.5B | $4.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 35.7× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $122.0B | |
| − Debt left | $4.4B | |
| = Buyer's equity | $117.6B | |
| Money multiple | 1.09× | on $107.5B put in |
| Buyer's yearly return (IRR) | 1.8% |
Price against return
What the buyer makes at other premiums over today's $452.38; the IRR reaches 20% at $280.80 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $497.62 | 5.5% |
| 20% | $542.86 | 3.6% |
| 30% | $588.09 | 1.8% |
| 40% | $633.33 | 0.2% |
| 50% | $678.57 | −1.3% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $9.4B | |
| EBITDA, last 12 months | $2.6B | 27.8% of revenue |
| Depreciation and amortization | $1.8B | |
| Capital spending | $191M | |
| Debt | $10.0B | |
| Cash | $3.6B | |
| Share price | $452.38 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 17% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Synopsys would cost about $588.09 a share, $113.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $506.67 | $97.4B |
| Median | 30% | $588.09 | $113.1B |
| High end (a quarter paid more) | 31% | $592.62 | $114.0B |
The odds, from history
Historically 3.5% of companies with its figures were bought within a year (0.7× the average). Its figures put it in decile 3 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Synopsys' latest quarter
Synopsys, Q3 FY26: revenue $2.5B (+42% year over year), operating margin 14.4%, net earnings $546M, operating cash flow $813M. The chart follows the revenue to costs, profit and cash.
Questions
Is Synopsys being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Synopsys?
A leveraged buyout at today's price plus 30% ($588.09 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $280.80 a share (−38% against today's $452.38). At $119.5B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Synopsys cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Synopsys would cost about $588.09 a share, $113.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.