Cadence Design Systems has announced it has signed a definitive merger agreement to acquire Simplex Solutions, a Sunnyvale, California-based company that provides software and services for the design and verification of integrated circuits (ICs). Cadence will acquire Simplex in a tax-free, stock-for-stock merger with an equity value of approximately $300 million. Cadence expects to complete the acquisition in the third quarter of 2002.
Our strategy is to bring the best technology to market for 0.13-micron-and-below design, said Ray Bingham, president and CEO of Cadence Design Systems. We have been building the solutions for the next generation of IC design for more than a year now. We are executing through our own innovation, accelerated by the acquisition of leading-edge technology from CadMOS, Silicon Perspective Corp. and Plato Design Systems. The proposed acquisition of Simplex fuels our efforts to supply our customers with the world’s best technology to ensure 1st Silicon Success®. Simplex’s world-class technology and management team will be making significant contributions to the combined company.
We’re excited by the opportunity to participate in the transformation of Cadence and the electronics industry, said Penny Herscher, chairman and CEO of Simplex. With Cadence’s strong global channel and technology investment in 0.13-micron and below, together we are able to deliver the best immediate and long-term solutions for our customers’ most daunting technology challenges.