@rick.merritt, cadence will definitely feel the pressure. Currently the SE-Encounter offered by cadence is competing Magma. But after this merger Magma will definitely become vendors first choice because of inhouse STA checking capability.
I hope this deal will make the life of engineer's easy. Earlier engineers used Magma for P&R and then port that data into Synopsys to check for timing issues. I hope this merger will create a single tools which will do both palcement and timing check.
Unfortunately such M&A's is likely to kill sound technologies inherent in aquired products with or without intention due to internal re-orgs etc in due course.
SNPS might claim that we aquire talent and develop further to solve customer issues, but what customers really loose is differentating technologies or aquired company platforms on which they would have invested considering the scale or sizes of these companies. Prey at the end are customers and employees. Sound example for the reason of occupy wall street :^) !
If you recall, a Cadence-Mentor merger was in the works a few years ago but fell through. Many felt it was a bad idea from the start because of so much product overlap. I don't think that is likely to happen. This is a different deal because Magma really is a lot smaller than Synopsys, Mentor or Cadence. Obviously there is product overlap with Synopsys and Magma, but not to the same degree.