Acquisition inline with Cadence’s EDA360 growth strategy
Chip design software maker Cadence Design Systems has agreed to acquire privately held Denali Software, a provider of electronic design automation (EDA) software and intellectual property (IP), for $315m in cash, inline with its EDA360 strategy to deliver cost-effective system component modeling and IP integration.
According to Cadence, the EDA360 centres on three components, the development of a hardware/software platform with all of the capabilities needed to begin applications development and deployment; development of a single system on chip (SoC), including silicon IP and ‘bare-metal’ software; and everything required to get a design into silicon, including the creation and integration of large digital, analog, and mixed-signal IP blocks.
Cadence said that the acquisition will accelerate the delivery of solutions in its vision, with Denali’s memory models providing system component modeling and verification capabilities required in System Realization; Denali Design IP products enhancing the Cadence open integration platform required in SoC Realization; and Denali ease-of-use and well-established support of third-party simulators by its Verification IP (VIP).
Cadence intends to finance the transaction with available cash. The transaction is expected to be accretive to its fiscal year 2011 earnings per share.
Lip-Bu Tan, president and chief executive officer of Cadence, said: “Denali strengths in Memory Models, Design IP, and Verification IP accelerate the execution of Cadence recently announced EDA360 vision, creating new opportunities for the company.
We are excited to welcome Denali talented employees and look forward to delivering the value inherent in this combination.”