MUNICH, Germany -- EDA software vendor Cadence Design Systems Inc. (San Jose, Calif.) has said it plans to buy the semiconductor IP business of Evatronix SA SKA (Bielsko-Biala, Poland) for an undisclosed sum.
Evatronix was established in 1991 as a reseller of CAD & EDA systems. In 1997 it started activities in the field of IP cores. The company has focused on cores to implement USB, MIPI, display and storage interfaces. About 60 engineers will transfer to Cadence under the terms of the deal, Cadence said.
Cadence has been making moves to build up its IP licensing business with several acquisitions in the last few months. Cadence acquired Tensilica Inc. for about $350 million and has announced the intent to acquire Cosmic Circuits Pvt. Ltd. (Bangalore, India). Cadence is waiting for regulatory approval from the Indian government on the Cosmic Circuits deal. Cadence also acquired a SERDES development team from PMC-Sierra Inc.
There is a degree of overlap with the offerings of Cosmic Circuits which also offers USB 2, USB 3 and MIPI cores. Pankaj Mayor, Cadence vice president of marketing, speaking at a Cadence European users meeting here, said that Cosmic's emphasis was on PHY layer circuits while Evatronix supplied controller cores. Martin Lund, senior vice president of research and development, SoC Realization Group, said "Evatronix have very strong engineering talent. The talent is as important as the IP."
Evatronix co-founder and president Wojciech Sakowski said: “Evatronix’s IP cores and services are designed for ease-of-integration, quality and time-to-market. As part of Cadence, we will be able to reach more customers globally and to accelerate our IP roadmaps. The integration with Cadence will allow our customers to get to market faster with less effort.
The acquisition is expected to close in the second quarter of 2013, and is not expected to have a material impact on Cadence’s balance sheet or second quarter or fiscal 2013 results of operations.
Click on image to enlarge.
How Cadence, Tensilica and Cosmic Circuits IP cores fit together with CPU and GPU cores to enable system chips. Evatronix will provide controllers for MIPI, USB, storage and display interface. Source: Cadence.
One main model is that with IP cores and the right licensing terms EDA companies get paid on per chip basis, rather than on a per design seat basis. This may allow them to draw down more of the value that their tools and cores help create.
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