Activist investor Elliott Investment Management has amassed a multibillion-dollar stake in chip-design software company Synopsys Inc (NASDAQ:SNPS, XETRA:SYP), according to a report by The Wall Street Journal, citing people familiar with the matter.
The report said Elliott plans to engage with the California-based company with a focus on improving how it monetizes its software and services portfolio.
The hedge fund is expected to push Synopsys to extract greater value from its offerings, which are widely used across the semiconductor and technology industries.
The Journal, citing unnamed sources, did not specify the exact size of Elliott’s position or detail the timing of the investment, but described it as a significant stake in the company, which has a market capitalization of more than $80 billion.
Synopsys provides software tools that are critical to the design and testing of advanced semiconductor components. Its products help chipmakers and technology companies simulate and verify that hardware will function as intended before manufacturing. Its customers include major firms such as Intel, Alphabet and Tesla.
Elliott is known for taking large positions in companies and advocating for operational or strategic changes aimed at boosting shareholder returns. Its reported plans to engage with Synopsys suggest a focus on increasing profitability within the company’s core software and services business.
Shares of Synopsys traded up more than 3% before Monday’s opening bell.