Cadence Design Systems, Inc. CDNS recently inked a definitive agreement to acquire Secure-IC, a premium provider of embedded security IP platforms. The buyout will enable the company to enhance its capabilities in delivering cutting-edge security solutions for complex system-on-chips (SoCs) and silicon solutions across diverse industries. Secure-IC’s expertise, proven portfolio and track record of more than 500 successful projects globally are likely to complement Cadence’s existing offerings, driving innovation and addressing the growing complexities of embedded cybersecurity in connected systems.
The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions. Cadence has stated that the acquisition will be immaterial to revenues and earnings in the short term.
Following the acquisition announcement, CDNS shares rose 3.4% and closed trading at $321.49 on Jan. 22.
How CDNS Stands to Benefit From the Deal
Based in Rennes, France, Secure-IC is renowned for its embedded security IP platforms, evaluation tools and services, including its flagship solutions — Securyzr, Laboryzr and Expertyzr. It serves top-tier players like SK Hynix Memory Solutions America, Synaptics, Silicon Labs and Faraday Technology, catering to industries such as automotive, data centers, mobile, aerospace, defense, Internet of Things, networking and consumer electronics. These markets heavily rely on robust embedded security solutions to address rising cyber threats.
Cadence’s existing portfolio, which includes silicon-proven IP such as interface IP, memory, artificial intelligence/ machine learning (AI/ML) and digital signal processing (DSP) solutions, will significantly benefit from Secure-IC’s security offerings. The combination of Cadence’s decades-long legacy in IP development with Secure-IC’s security solutions will enable robust, comprehensive, integrated cybersecurity for SoC designs. Secure-IC’s solutions will bring reciprocal synergies to Cadence’s existing offerings, such as protocol controllers, AI accelerators and other processor architectures.
As the semiconductor industry continues to evolve, Cadence’s acquisition of Secure-IC is likely to unlock new opportunities for growth and innovation. Secure-IC’s portfolio will strengthen Cadence’s ability to develop innovative solutions for next-generation SoCs and chiplet systems. This acquisition is not the first collaboration between Cadence and Secure-IC. The companies recently worked together on a flagship chiplet project, demonstrating the potential of their combined expertise.
Cadence is on an acquisition spree to expand its business pipeline and solidify its foothold in the electronic design automation software and services market. In June 2024, Cadence acquired Switzerland-based BETA CAE Systems, enhancing its Intelligent System Design strategy by expanding multi-physics system analysis and entering structural analysis. Earlier, it acquired California-based Invecas, strengthening custom chip design, advanced packaging and embedded software with a skilled engineering team in Hyderabad, India. Other notable acquisitions include Intrinsix (2023), Pointwise (2021) and NUMECA (2021).
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 9% in the past year compared with the sub-industry's growth of 14.9%.
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Stocks to Consider
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Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
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