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Cadence guns for Synopsys with Tensilica buy
Dylan McGrath, EETimes
3/12/2013 3:01 AM EDT
SAN FRANCISCO—EDA vendor Cadence Design Systems Inc. Monday (March 11) agreed to acquire dataplane processing IP specialist Tensilica Inc. for about $380 million in cash in a deal that would significantly expand Cadence's IP offerings and put the firm in position to compete head on with archrival Synopsys Inc. in the silicon IP business.
"It's a natural extension of [Cadence's] business," said veteran EDA analyst Gary Smith, chief analyst at Gary Smith EDA. Cadence has been "big in verification IP and now they are moving in on Synopsys' silicon IP business," Smith said.
Smith said the acquisition could also help strengthen Cadence's relationship with processor IP supplier ARM Holdings plc. "Recently, Tensilica has been getting into designs alongside ARM rather than competing with them," Smith said. "This makes them a safe play, unlike Synopsys’ buying ARC." Synopsys acquired the configurable IP technology developed by ARC International plc when Synopsys bought Virage Logic Inc. in 2010.
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