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Cadence, Denali ink merger deal

Posted: 17 May 2010 ?? ?Print Version ?Bookmark and Share

Keywords:Cadence Denali merger? EDA? verification?

Cadence Design Systems Inc. and Denali Software Inc. have entered into a definitive merger agreement, under which Cadence will acquire Denali for $315 million in cash. Denali is expected to have approximately $45 million in cash at closing. In alignment with its EDA360 strategy, this transaction expands Cadence's solution portfolio to deliver efficient and cost-effective system component modeling and IP integration. The transaction was unanimously approved by the Cadence and Denali Boards of Directors.

"Denali's strengths in memory models, design IP and verification IP (VIP) accelerate the execution of Cadence's recently announced EDA360 vision, creating new opportunities for the company," said Lip-Bu Tan, president and CEO of Cadence.

"Bringing our two companies together provides a path for future growth, as well as expanded opportunities for our customers and employees," said Sanjay Srivastava, president and CEO of Denali.

EDA360 centers on three components: System Realizationthe development of a complete hardware/software platform with all of the capabilities needed to begin applications development and deployment; SoC Realizationthe development of a single SoC, including silicon IP and "bare-metal" software; and Silicon Realizationeverything required to get a design into silicon, including the creation and integration of large digital, analog, and mixed-signal IP blocks.

The merger will accelerate the delivery of the solutions outlined. Denali's memory models provide system component modeling and verification capabilities required in System Realization. Denali's Design IP products enhance the Cadence Open Integration Platform required in SoC Realization. Lastly, support of third-party simulators by its VIP, coupled with the focus on metric-driven and compliance management of Cadence's VIP, make this combination highly complementary and necessary for SoC Realization, and enable Cadence to expand its third-party simulation support.

Cadence intends to finance the transaction with available cash. The transaction is expected to be accretive to Cadence's fiscal year 2011 earnings per share.

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