LONDON -- EDA software vendor Cadence Design Systems Inc. (San Jose, Calif.) has entered into a definitive merger agreement to buy memory model company Denali Software Inc. (Sunnyvale, Calif.) for $315 million in cash. Denali is expected to have approximately $45 million in cash at closing.
The transaction expands Cadence's solution portfolio to deliver efficient and cost-effective system component modeling and IP integration. The transaction was unanimously approved by the Cadence and Denali boards of directors.
"Denali's strengths in memory models, design IP and verification IP accelerate the execution of Cadence's recently announced EDA360 vision, creating new opportunities for the company," said Lip-Bu Tan, president and chief executive officer of Cadence, in a statement.
"Cadence is a leader in global electronic design and is the right match for Denali and its employees. I am personally excited to be a part of the Cadence team and to help realize the EDA360 vision." said Sanjay Srivastava, president and chief executive officer of Denali, in the same statement
Cadence's EDA360 initiative centers on three components: system realization, SoC realization and silicon realization.
Denali's memory models help provide component modeling and verification at the system level; design IP contributes to the vision at the SoC level and support of third-party simulators supports the creation of silicon, Cadence said.
Cadence intends to finance the transaction with available cash. The transaction is expected to be accretive to Cadence's fiscal year 2011 earnings per share.
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