Cadence Acquires Sigrity, a Leader in High-Speed PCB and IC Packaging AnalysisProven Signal and Power Integrity Design, Analysis and Verification Technologies Strengthen System Development with Allegro and OrCAD flowsSAN JOSE, Calif., 02 Jul 2012
Cadence Design Systems, Inc. (NASDAQ: CDNS), a leader in global electronic design innovation, today announced it has acquired Sigrity, Inc., a leading signal and power integrity technology provider. Sigrity provides a rich set of gigabit signal and power network analysis technologies, including a unique power-aware signal integrity analysis capability for system, printed circuit board (PCB), and IC package designs. The combination of Sigrity analysis technologies with Cadence Allegro® and OrCAD® design tools will provide a comprehensive front-to-back integrated flow to enable system and semiconductor companies to deliver high-performance devices employing gigabit interface protocols such as DDR and PCI Express. The integrated solution will particularly benefit customers delivering electronic systems in high-growth markets such as mobile multimedia devices and cloud computing infrastructure.
“Increasing use of high-performance, multi-gigahertz systems underscores the need for advanced and accurate signal, power and thermal analysis solutions,” said Nimish Modi, senior vice president, System and Software Group at Cadence. “Sigrity is the leading solution provider in the market, and the integrated Cadence and Sigrity products will deliver a predictable path for design and verification of high-performance PCB-based systems, speeding end product delivery.”
“Sigrity pioneered a suite of market-proven, industry-leading signal and power integrity solutions that provide comprehensive analysis and verification,” said Dr. Jiayuan Fang, president of Sigrity. “Cadence and Sigrity have worked together for years to enable design and analysis of the industry’s most advanced PCBs, System-in-Packages, and SoCs. We look forward to joining Cadence to bring the next generation of signal and power aware design and verification tools to the industry.”
The acquisition of Sigrity was completed on July 2, 2012 at a purchase price of approximately $80 million. Primarily due to the impact of purchase accounting rules on deferred revenue and the transition to a ratable license model for Sigrity products, the transaction is expected to be slightly dilutive to fiscal 2012 earnings per share, and then slightly accretive for 2013. Cadence expects that the transition of Sigrity’s business to Cadence’s ratable business model, and the amortization of Sigrity’s deferred revenue will be substantially complete by the end of fiscal 2013. The transaction is not expected to impact Cadence’s previously disclosed profitability goals for fiscal 2013.
Cadence will offer Sigrity technologies immediately as add-on options to Cadence Allegro and OrCAD PCB and IC Packaging tools. The company will also continue to support Sigrity technologies used with third-party design software.
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Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at www.cadence.com
The statements contained above regarding the impact of the acquisition of Sigrity, including the impact of the acquisition on Cadence’s 2012 and 2013 results, are forward-looking statements based on current expectations or beliefs, as well as a number of preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) Cadence's ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (ii) the success of Cadence’s efforts to improve operational efficiency and growth; (iii) the mix of products and services sold and the timing of significant orders for Cadence’s products, and its shift to a ratable license structure, which may result in changes in the mix of license types; (iv) change in customer demands, including customer consolidation and the possibility that restructurings and other efforts to improve operational efficiency could result in delays in customers’ purchases of products and services; (v) economic and industry conditions in regions in which Cadence does business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (vii) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence’s ability to access capital and debt markets; (viii) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires; (ix) the effects of efforts to improve operational efficiency on Cadence’s business, including its strategic and customer relationships, ability to retain key employees and stock prices; (x) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, litigation or other matters; and (xi) the effects of any litigation or other proceedings to which Cadence is or may become a party.
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