Cadence Design Systems Buys Sigrity for $80 Million

Cadence Design Systems has acquired Sigrity for about $80 million. Sigrity develops and supports advanced software analysis solutions to ensure power integrity and signal integrity in chips, packages and printed circuit boards; and physical design tools for single die and SiP implementations. 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.

Sigrity offers 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.

The acquisition of Sigrity was completed today. 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.

More info: Cadence Design Systems, Inc. | Sigrity, Inc.