Sigrity acquired by Cadence in $80M deal

[Daniel Payne]

Cadence spent $80M to acquire Sigrity, an EDA supplier of power and signal integrity tools.

We've added this deal to the list of all known EDA mergers and acquisitions.

If you use Sigrity in a non-Cadence flow (Apache, CST, Mentor, Synopsys, Zuken) then there may be some reason for concern because in the past large EDA vendors have been known to stall, delay or outright cancel 3rd party agreements. Yes, the press release does address this and promises support for third-party integrations...

 

[yanfeng]

Why Cadence buy? The anwser is apparent:

1) In package-level SI and PI analysis, Cadence encouted a powerful competitor, Ansys, also Sigrity are eating Cadence's market share. To survie, Cadence have to by Sigrity technologies.
2) In board-level SI analysis, now Cadence's SQ is out of gas, so they need new Sigrity technology to compete against Mentor's Hyperlynx suite

Why Sigrity sell?

1) They have much competitors in this niche market. It's very difficult to expand thier market share.
2) Designers prefer the solution to support analysis in design,not do analysis after design. A standalone SI or PI tool is difficult to survie.


I guess next consolidatin may be happaned between Agilent and Mentor Graphics, or CST.

Yanfeng

 

[Daniel Payne]

Yanfeng,

I agree that the SI/PI market is crowded with many EDA vendors so consolidation makes a lot of sense. The only down side is that with every acquisition come lay-offs.