Cadence to acquire Tensilica
12 March 2013
Cadence Design Systems has entered into a definitive agreement to acquire Tensilica for approximately $380 million in cash.
Cadence Design Systems has entered into a definitive agreement to acquire Tensilica for approximately $380 million in cash. Further expanding Cadence’s IP portfolio, Tensilica provides configurable dataplane processing units that are optimised for embedded data and signal processing targeted at mobile wireless, network infrastructure, auto infotainment and home applications.
“With Tensilica, we will be able to provide designers with a more complete SoC solution that will speed the development of innovative and differentiated products, while reducing time to market,” said Lip-Bu Tan, president and chief executive officer of Cadence. “We look forward to working with Tensilica’s dedicated employees as one team to bring even more value to our customers.”
Tensilica customised DPUs augment traditional custom hardware design, offering both time-to-market and programmability advantages and can be optimised to achieve optimal power, performance and area efficiency. Tensilica IP provides application-optimised subsystems that work synergistically with industry-standard CPU architectures.
Cadence intends to finance the transaction with available cash and an existing revolving credit facility. The transaction is expected to close in the second quarter of fiscal 2013, subject to customary closing conditions including regulatory approvals. Cadence expects the transaction to be slightly dilutive to its non-GAAP earnings per share in fiscal 2013 due to the impact of merger-related accounting and accretive to its non-GAAP earnings per share in fiscal 2014. The impact on GAAP earnings per share will be available after valuation and the completion of purchase accounting.
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