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Cadence Acquires Design Acceleration for $27 Million in Cash and Stock

Strategic Insights

— 2 min read

Cadence Design Systems, Inc., a leading provider of software products and services for the design and verification of electronic systems, has agreed to acquire Design Acceleration, Inc. (DAI), a privately-held company specializing in design automation technology used in system-on-a-chip (SOC) design. The acquisition is expected to improve the overall efficiency of verification for today's leading-edge, multi-million gate SOC devices by integrating DAI's products with Cadence's system-to-silicon implementation flow.

The acquisition will enhance designer productivity through a flexible, intuitive analysis environment for design debug, and will provide the productivity boost needed to enable verification of multiple, large blocks of system functionality in a single chip. DAI's product roadmap and vision for future technologies complement the Cadence strategy for SOC, and its employees will join the Cadence organization.

Key Takeaways:

  • Cadence will acquire DAI for approximately $27 million in cash and Cadence common stock.
  • DAI's approximately 40 employees will join the Cadence organization.
  • DAI's product portfolio includes DAI Signalscan for waveform viewing, DAI Coverscan for code coverage analysis, and DAI Comparescan for simulation comparisons and rules-based analysis.
  • The acquisition is expected to improve the overall efficiency of verification for today's leading-edge, multi-million gate SOC devices.
  • DAI's product roadmap and vision for future technologies complement the Cadence strategy for SOC.
  • The transaction is subject to shareholder approval and is expected to close in the next few weeks.

Statistics:

  • The acquisition is valued at approximately $27 million.
  • DAI has a product portfolio of three design analysis tools: DAI Signalscan, DAI Coverscan, and DAI Comparescan.
  • The company has a customer base of over 400 major corporations, including Broadcom, Compaq, Cyrix, Hitachi, Hewlett Packard, IBM, Intel, Motorola, National Semiconductor, Nortel, Silicon Graphics, Sony, Sun Microsystems, and Texas Instruments.
  • Cadence has annual sales of $916 million and employs over 4,000 people.
  • The company has sales offices, design centers, and research facilities around the world.

Sources:

  • Business Wire, "Next-generation Test Bench Creation and Analysis Technology Targets Breakthrough Productivity for Multi-Million Gate, Block-based Designs", January 13, 1999
  • Cadence Design Systems, Inc. website, http://www.cadence.com, accessed January 13, 1999
  • Design Acceleration, Inc. website, http://www.designacc.com, accessed January 13, 1999
  • Note to Editors: Cadence and the Cadence logo are registered trademarks and Cadence Connections is a service mark of Cadence Design Systems, Inc. DAI Signalscan, DAI Comparescan, and DAI Coverscan are trademarks of Design Acceleration, Inc. All others are properties of their holders.

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