Long Island cybersecurity startup Code Dx Inc. has been acquired by a Silicon Valley supplier of tools for producing computer chips.
Terms of the acquisition by Synopsys Inc., an S&P 500 company with a market capitalization of $40 billion, were not disclosed.
Jason Schmitt, general manager of the software integrity group of Synopsys, said the “vast majority” of the two dozen Code Dx employees had accepted offers to join the Mountain View, California, company as full-time employees.
Anita D’Amico, chief executive of Northport-based Code Dx, will be vice president of market development at Synopsys.
The transaction closed on June 8.
Steve C. Morgan, founder of Northport-based Cybersecurity Ventures, a market research firm, said demand is high for companies like Code Dx.
“This is a very hot company in a very hot market — applications cybersecurity,” he said.
The financial resources of Synopsys should help the business expand in the marketplace, Morgan said.
“They have deep pockets that a small cybersecurity company could benefit from,” he said.
The primary business of Synopsys is to supply tools and software that help companies design computer chips. The second largest business unit licenses intellectual property — such as the design of computer charging ports — to technology companies.
The software integrity group, with about 1,500 of the company’s 15,000 employees, is its third largest business unit.
The unit’s tools “enable teams to quickly find and fix vulnerabilities and defects in proprietary code, open source components, and application behavior,” the company said. In addition to testing software for security holes, the unit’s Synopsys Intelligent Orchestration software provides an assessment of risks.
Code Dx software is used to aggregate and correlate the testing results from Synopsys and third-party products.
In 2019, Code Dx won a $2 million venture capital investment when D’Amico — a former information-warfare team leader at Northrop Grumman Corp. — made a 15-minute pitch that bested competing companies from around the country in the “DataTribe Challenge.”
The funding from Fulton, Maryland, venture capital firm DataTribe was used to scale up Code Dx hiring and move out of offices it shared with Northport-based Applied Visions Inc., which spun off Code Dx in 2015.
A blog post by Synopsys about the acquisition of Code Dx said that companies should run multiple tests on their software, “the number one attack surface.”