Is Cadence Next? (D Asset Management Inc. Acquires 77,542 Shares of CDNS)

[Daniel Nenni]

I made this comment in the Siemens nears deal to buy Mentor Graphics at a 21% premium therad:

This is a GREAT deal. Mentor is now part of an $80B+ company which puts Cadence between a rock (SNPS) and a hard place (Siemens). Lip-Bu could follow this move by taking Cadence private. I know the China PE firms are chomping at the bit. Another seriously disruptive move would be for TSMC to buy Cadence and give the tools away for free. Just imagine the possibilities........

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And now this:

TD Asset Management Inc. Acquires 77,542 Shares of Cadence Design Systems Inc. (CDNS)

TD Asset Management Inc. raised its position in shares of Cadence Design Systems Inc. (NASDAQ:CDNS) by 23.8% during the third quarter, according to its most recent 13F filing with the SEC. The firm owned 404,001 shares of the company’s stock after buying an additional 77,542 shares during the period. TD Asset Management Inc. owned about 0.14% of Cadence Design Systems worth $10,315,000 at the end of the most recent quarter. Other institutional investors have also made changes to their positions in the company.......

It sure is an exciting time in EDA!

 

[davenoble]

Dan,
CDNS has a float of 287 million shares. Their 20th largest shareholder, Arrowpoint has 4.5 m shares worth $115m. So, I don't think we can read anything into TD Asset Management increasing their holding as far as CDNS being acquired is concerned.

I suspect that, like other asset management firms, they are rebalancing their portfolio because the year end is coming up. They probably also sense that CDNS could be 'in play' next year as a result of the Mentor acquisition.

However, the Mentor acquisition raises some interesting thoughts. It was a great deal for Siemens, and a relative bargain. Mentor and Siemens are complimentary in terms of industries served and product sets, with both companies able to sell upstream and downstream to automotive, semiconductor, IoT, industrial controls and other high tech segments.

A mirror image of this would be Dassault acquiring CDNS but it's probably beyond Dassault's budget at a likely take out value of $8bn - $10bn.

So, to answer your question, CDNS may be next, but possibly not for a while.