Silvaco announced on November 10 2025 that it had reached a settlement with former shareholders of its 2018 acquisition, Nangate. The agreement follows a Court of Appeal reversal of earlier fraud and breach‑of‑contract verdicts and results in the dismissal of all claims against the company.
The litigation began after Silvaco’s purchase of Nangate in March 2018. In July 2024 a jury awarded Nangate shareholders $11.3 million for breach of contract, and in August 2024 the same jury awarded $17 million in punitive damages against Silvaco for fraud. The Court of Appeal overturned those verdicts, clearing the company of the legal exposure that had been reflected in its financial statements.
Silvaco’s Q1 2025 earnings report included a $13.1 million accrual for the litigation. With the settlement in place, that provision is removed, improving the balance sheet and eliminating a future liability that had been factored into the company’s risk profile. The settlement terms were not disclosed, but the removal of the accrual indicates a significant reduction in potential outflows.
A Silvaco spokesperson said, “We have consistently rejected any suggestion of fraud or breach of contract regarding the acquisition of Nangate, and we are pleased to have reached a settlement of our dispute.” The statement underscores the company’s long‑standing position and its satisfaction that the matter is closed.
The settlement frees capital that Silvacow can now allocate to research and development and to the integration of recent acquisitions. It also allows the company to focus on its core semiconductor design solutions without the distraction of a lingering legal claim. Leadership changes—Dr. Walden Rhines as CEO and Chris Zegarelli as CFO—occurred in September 2025, positioning the firm for a renewed strategic push.
In summary, the settlement resolves a protracted dispute that had exposed Silvaco to a multi‑million‑dollar liability, strengthens its financial position, and signals confidence in its future growth trajectory.
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