CRA advised counsel to Synopsys, Inc. in its acquisition of Magma Design Automation Inc., a provider of chip design software. Both firms provide electronic design automation used by semiconductor designers and are the leading producers in several software categories. CRA advised Synopsys throughout a review by the FTC. CRA economists analyzed previous mergers in this industry and found no evidence that, in similar mergers, the combined firms were able to exercise pricing power. CRA’s analysis also revealed a long history of new product entry in the market segments of Magma’s primary products, mitigating any competitive concerns the FTC may have had.
IP Literature Watch: November 2021
Among the papers featured this month are an article that discusses whether and to what extent tax incentives for intellectual property affect corporate M&A...