In February 2004, Synopsys announced that it would acquire Monolithic for US$432 million. However, a month later, Synopsys terminated their agreement to buy out Monolithic and paid the company a $10 million termination fee as part of the merger contract. This came after Synopsys had switched the terms of their acquisition, proposing to Monolithic a $13.50-per-share all-cash offer, incurring a very high premium. Monolithic followed with a lawsuit in Delaware courts seeking to force Synopsys to finish their acquisition. Monolithic dropped the suit in July 2004 without payment or liability. In late December 2004, following ill-health and a tough year for the company, chairman Fu-Chieh resigned from Monolithic, with chief financial officer Mark Voll taking the mantle.
