Elliott Investment Management acquired a multibillion-dollar stake in chip-design software giant Synopsys. The activist firm intends to push management to increase profitability across software and services.
Managing Partner Jesse Cohn described Synopsys as essential to the global chip industry. He expects the company to benefit from rising chip complexity driven by artificial intelligence growth.
Elliott seeks to improve sales and margins to match competitor Cadence Design Systems. Synopsys stated its board and management regularly engage with shareholders and value their input.