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yalanand
adroit_91
@eewiz : Thanks! So, I assume, there will be some profit to be made! :)
Ansys to buy Apache Design for $310 million
6/30/2011 2:22 PM EDT
SAN FRANCISCO—Design software vendor Ansys Inc. said Thursday (June 30) it signed a definitive agreement to acquire power analysis and optimization EDA vendor Apache Design Solutions Inc. for $310 million in cash.
The deal is worth $281 million net of $29 million on Apache's balance sheet, Ansys (Pittsburgh) said. It also includes $13 million worth of retention and provisions and incentives for key members of Apache management and employees, including an additional $13 million of performance equity awards, Ansys said.
Ansys said it intends to fund the transaction with cash on-hand from the combined organization. The transaction, currently expected to close in the third quarter, is subject to customary closing conditions and regulatory approvals, Ansys said. After the closing, Apache will become a wholly-owned subsidiary of Ansys, the company said.
Ansys said the acquisition of Apache complements its software solutions by bringing together products that drives the company's system vision for ICs, electronic packages and printed circuit boards. The combination is expected to accelerate development and delivery of new and products to the marketplace while lowering design and engineering costs for customers, Ansys said.
"We see this as an opportunity to strengthen the Ansys vision for solving chip, package and board design problems," said James Cashman, president and CEO of Ansys, in a statement.
Ansys and Apache are currently developing integration plans that leverage and build on the cultural similarities and the best practices from each team, Ansys said.
The deal is worth $281 million net of $29 million on Apache's balance sheet, Ansys (Pittsburgh) said. It also includes $13 million worth of retention and provisions and incentives for key members of Apache management and employees, including an additional $13 million of performance equity awards, Ansys said.
Ansys said it intends to fund the transaction with cash on-hand from the combined organization. The transaction, currently expected to close in the third quarter, is subject to customary closing conditions and regulatory approvals, Ansys said. After the closing, Apache will become a wholly-owned subsidiary of Ansys, the company said.
Ansys said the acquisition of Apache complements its software solutions by bringing together products that drives the company's system vision for ICs, electronic packages and printed circuit boards. The combination is expected to accelerate development and delivery of new and products to the marketplace while lowering design and engineering costs for customers, Ansys said.
"We see this as an opportunity to strengthen the Ansys vision for solving chip, package and board design problems," said James Cashman, president and CEO of Ansys, in a statement.
Ansys and Apache are currently developing integration plans that leverage and build on the cultural similarities and the best practices from each team, Ansys said.
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docdivakar
6/30/2011 5:40 PM EDT
It took a little time for this to happen, I was expecting some news release at DAC couple of weeks ago in San Diego.
What next? Magma?
MP Divakar
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goafrit
6/30/2011 7:08 PM EDT
Yes. I think Magma will be gone by next summer. The environment is tough and competition is hitting up.
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Neo1
7/1/2011 12:10 AM EDT
Naw, I don't see Magma going anytime soon, what with chip sales projections showing in excess of 10% for the coming years. Yeah but their strength in the backend process is not working out with such package deals these bug 3 sellout their tools for.
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yalanand
7/3/2011 10:55 AM EDT
@Neo1,
I agree with you. Magma is here to stay. Many major vendors have flow setup for magma. I dont think they will stop using magma.
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eewiz
7/1/2011 1:01 AM EDT
Magma stock has gone up quite a bit in recent months. So not a good time to buy. Current market cap is 530M and one would need to shell out atleast 700-800M to buy Magma. I doubt whether SYN or CDNS will want to spend that much right now.
http://www.google.com/finance?q=NASDAQ%3ALAVA
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adroit_91
7/1/2011 3:32 PM EDT
What happens in such cases to employees, who had purchased stock, but left before the acquisition? Do they get a cut?
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eewiz
7/2/2011 3:13 AM EDT
IIRC Apache is not listed yet. If the company is not listed, many a times the management asks to return the stock at a higher price while the employee leaves. If that didn't happen, the ex-employee should get a cut at the acquired value.
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adroit_91
7/2/2011 10:03 AM EDT
@eewiz : Thanks! So, I assume, there will be some profit to be made! :)
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