SAN JOSE, Calif. - Cadence Design (NASDAQ:CDNS) Systems, Inc. (NASDAQ: CDNS), an $83.8 billion market cap technology leader with impressive gross profit margins of 87.8%, has announced its definitive agreement to acquire Secure-IC, a prominent provider of embedded security IP platforms. The transaction is set to enhance Cadence's IP portfolio, addressing the growing need for integrated security in electronic systems across various industries. According to InvestingPro analysis, Cadence maintains a strong financial health score, positioning it well for strategic acquisitions.
This strategic move aims to complement Cadence's existing silicon-proven IP offerings, which include interface, memory, AI/ML, and DSP solutions. Secure-IC's expertise in embedded security will be integrated into Cadence’s offerings, providing robust security solutions for SoCs and chiplets used in consumer electronics, automotive, data centers, and more.
Boyd Phelps, senior vice president and general manager of the Silicon Solutions Group at Cadence, emphasized the importance of embedded security in the design of semiconductors and electronic systems. He stated that the acquisition is a testament to Cadence's commitment to providing comprehensive system solutions and delivering value to customers in the AI-enabled SoC market.
Secure-IC, with a history of 15 years in the cybersecurity field, brings to the table a portfolio of security solutions that are multi-certified and comply with global cybersecurity standards. Hassan Triqui, co-founder and CEO of Secure-IC, expressed confidence that the merger with Cadence will create a synergy to accelerate innovation and scale globally.
The customer base of Secure-IC spans several industries, providing Cadence with additional go-to-market opportunities. The acquisition is expected to close in the first half of 2025, pending regulatory approval and customary closing conditions. It is anticipated to have an immaterial impact on Cadence's revenue and earnings for the current year.
Cadence is a leader in electronic systems design with over 30 years of experience in computational software. The company has been recognized for its workplace culture, consistently ranking among Fortune magazine's 100 Best Companies to Work For over the past decade.
The integration of Secure-IC's technology with Cadence's solutions will address the complexities of embedded cybersecurity and support the delivery of secure, connected systems. This acquisition is a strategic step for Cadence to further solidify its position as a partner in SoC design, providing end-to-end security solutions that are adaptable to a variety of customer applications.
The information in this article is based on a press release statement from Cadence Design Systems, Inc. For deeper insights into Cadence's financial health, valuation metrics, and growth potential, including 12+ additional ProTips and comprehensive analysis, visit InvestingPro, where you'll find detailed Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Cadence Design Systems has been the focus of numerous analyst notes and financial updates. Redburn-Atlantic and Loop Capital both initiated coverage of Cadence with a Buy rating, setting price targets of $350 and $360 respectively. KeyBanc Capital Markets also expressed a positive outlook for Cadence, highlighting the company's potential growth in the Electronic Design Automation sector.
Cadence's financial performance has been impressive, reporting a 19% increase in total revenue for the third quarter of 2024, reaching $1.215 billion. This growth was largely attributed to the company's AI-driven solutions and design enablement offerings. The company also updated its full-year earnings per share (EPS) outlook, expecting fourth-quarter revenue to be between $1.325 billion and $1.365 billion, and its 2024 revenue forecast to $4.61 billion to $4.65 billion, with GAAP EPS projected between $3.70 and $3.76.
In terms of board movements, Cadence announced the appointment of Moshe Gavrielov to its board of directors. Gavrielov brings a wealth of experience from his current roles on the boards of NXP Semiconductors (NASDAQ:NXPI) N.V. and Taiwan Semiconductor Manufacturing Company Ltd. These recent developments highlight Cadence's strong position in the market and its potential for further growth.
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