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Cadence to buy Denali for $315 million

5/13/2010 03:00 PM EDT
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MikeSantarini
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re: Cadence to buy Denali for $315 million
MikeSantarini   5/14/2010 5:50:34 PM
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Is there going to be an analysis follow up piece to this place holder article? In particular, I'd like to know if Denali's employees were given a cut. If Denali's execs will stay on, and, if so, for how long? Will Cadence still throw Denali's memcon? Also, what exactly is Cadence getting with this acquisition? Denali's most noted for selling memory models for software simulators (not even the simulators themselves)--that's verification IP. The company in more recent years has started to offer implementation IP too. Will the models still be sold for and work in third party simulators other than Cadence? What implementation IP does Denali offer? Lots of folks are saying this acquisition now makes Cadence as formidable an IP player as Synopsys but if you look at the portfolios (even after a Denali acquisition) it doesn't seem even close to me. I think it is a vast overstatement to say Denali acquisition equals "EDA360 mission accomplished"--it's just a small step toward it.

CamilleK
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re: Cadence to buy Denali for $315 million
CamilleK   5/13/2010 9:51:07 PM
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This is an excellent move by Cadence and is definitely in line with the announced EDA360 strategy and along the lines of expanding the verification scope to help the IP integrators and not just the IP creators. In fact the chapter headings of the EDA360 paper speak to what Denali will mean to Cadence: - Ch 1: EDA Industry Focus Shifts to Integration and Profitability - Ch 2: Application-Driven System Realization - Ch 3: Software-Aware SoC Realization - Ch 4: EDA360 Enables Silicon Realization So definitely a play from their blueprint. With the Wind River announcement/partnership linking virtual prototyping to RTL, then this one, I expect even more aggressive moves from Cadence in the verification space. I would encourage Cadence to build on verification enablement while not losing focus on preserving the custom/analog position (not that they need my advice :-). Finally I would say more consolidation will be occuring in many EDA/IP/foundry spaces with companies looking to either bulk up or cash out.

harrytheASICguy
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re: Cadence to buy Denali for $315 million
harrytheASICguy   5/13/2010 9:04:11 PM
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This makes a lot of sense from a product/strategic POV and also from an operational POV. Strategically, Cadence was behind in the IP space and this gets them up near the front. It also provides the IP needed for system design (memory models) which will help in its EDA360 push. Operationally, the Denali sales force is mostly not needed since it overlaps Cadence's sales force, so it can save expenses. I'd also expect perhaps a new sales channel for this IP to emerge, one that is lower cost and uses online technology.

MikeSantarini
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re: Cadence to buy Denali for $315 million
MikeSantarini   5/13/2010 3:42:03 PM
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There goes the best party at DAC...

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