Synopsys agreed to add Elliott Investment Management managing partner Jesse Cohn to its board. The activist investor built a multi-billion-dollar stake in the $100 billion chip-design software maker. Synopsys shares have climbed roughly 20% since Elliott's involvement became public.
Chip-design software maker Synopsys Inc. reached an agreement with activist investor Elliott Investment Management that adds managing partner Jesse Cohn to its board, the company said Wednesday.
"Jesse brings a uniquely differentiated perspective as an experienced board member," Aart de Geus, executive chair and founder of Synopsys, said.
The Sunnyvale, California-based company expanded its board to 11 members to accommodate Cohn, who will also join the corporate governance and nominating committee. Synopsys, which counts Tesla Inc. and Alphabet Inc. among its customers, has a market valuation of about $100 billion.
Elliott built a multi-billion-dollar investment in Synopsys and held discussions with the company for roughly two months. The hedge fund initially sought three board seats, according to people familiar with the matter. Synopsys shares have climbed roughly 20% since Elliott's involvement became public.
Cohn is a managing partner at Elliott alongside Gordon Singer, the son of founder Paul Singer. Together, they manage Elliott's investment committee. Cohn has deep expertise in technology investing and previously served on Twitter's board from March 2020, leaving a year later after developing a blueprint for changes that doubled the social media firm's share price before it was acquired by Elon Musk.
The activist agreement comes as Synopsys prepares to report quarterly earnings Wednesday after the closing bell. Chief Executive Officer Sassine Ghazi, who took the role in January 2024, will lead the earnings call. Nvidia Corp., which revealed a $2 billion investment in Synopsys in December, is among the company's key partners in developing AI-powered chip design tools.
The board appointment signals that Elliott will push for improved margins and operational efficiency at Synopsys, which has been one of the primary suppliers of chip design software to Advanced Micro Devices Inc., Nvidia and other semiconductor companies for decades. Investors will watch Wednesday's earnings report for any strategic updates tied to the activist's involvement.
This article is for informational purposes only and does not constitute investment advice.
