SAN JOSE, Calif. Cadence Design Systems Inc. has signed a definitive agreement to acquire Verisity Ltd. for $12 per share in an all-cash deal estimated to be worth $285 million.
Cadence and Verisity (Mountain View, Calif.) remain in a quiet period prior to releasing earnings and thus declined comment on the financial aspects of the acquisition. But a Cadence spokesman said the acquisition will round out Cadence's front end verification, emulation and prototyping suite.
"Verisity is strong in verification automation and hardware acceleration. Add that to our strengths in simulation and in-circuit emulation, we can offer a more complete solution for customers," said Adolph Hunter, group director of corporate communications at Cadence.
Through the acquisition, Cadence gains Verisity's Specman Elite testbench generation tool to complement its simulation and formal verification tool portfolio. Gartner Dataquest lists Specman Elite as the market share leader in ESL verification.
Cadence also gains Axis' event-based Xtreme ESL emulator and Xcite event based simulation accellerator, which Verisity gained in its December 2003 acquisition of Axis.
To date, Cadence's Quickturn emulation systems have been cycle based. Veristy boasts its emulation and accelerators are superior because users can take the code and testbenches they use for simulation and run them on acceleration and emulation without loading and coding hassles.
The acquisition seemingly also puts Verisity's e testbench language on more solid ground.
Observers had predicted that the company's quasi-proprietary e language and even Synopsys' Vera testbench language would fade omce Synopsys and various standards bodies completed development of SystemVerilog language. Verisity has been seeking IEEE standardization of its e testbench.
Cadence's large verification tool user base may help proliferate the language and, thus, it chances of becoming an industry standard.
Cadence also gains some new executives in the acquisition. Upon completion of the acquisition, Cadence said Moshe Gavrielov, CEO of Verisity, will join the Cadence executive management team. Yoav Hollander, founder and CTO, will play an integral role in setting Cadence's verification technology direction.
Cadence did not disclose the overall price of the acquisition, but in a Verisity filing with the Securities and Exchange Commission last September, the company reported 23,811,202 shares outstanding. Cadence has not disclosed when the acquisition is expected to close.
The company will likely reveal greater detail during its quarterly earnings call scheduled for Feb. 3.