Cadence to Boost Embedded Security Portfolio With Secure-IC, Stock Up

Core Insights - Cadence Design Systems, Inc. (CDNS) has signed a definitive agreement to acquire Secure-IC, enhancing its capabilities in embedded security solutions for complex system-on-chips (SoCs) and silicon solutions across various industries [1][5] - The acquisition is expected to close in the first half of 2025, pending regulatory approvals, and will have an immaterial impact on Cadence's revenues and earnings in the short term [2] - Following the announcement, CDNS shares increased by 3.4%, closing at $321.49 on January 22 [2] Company Overview - Secure-IC, based in Rennes, France, is recognized for its embedded security IP platforms and serves major clients in industries such as automotive, data centers, mobile, aerospace, defense, Internet of Things, networking, and consumer electronics [3][4] - Cadence's existing portfolio includes silicon-proven IP such as interface IP, memory, AI/ML, and DSP solutions, which will benefit from Secure-IC's security offerings [4] Strategic Benefits - The acquisition is expected to unlock new growth opportunities and innovation for Cadence, particularly in developing next-generation SoCs and chiplet systems [5] - Cadence has a history of collaboration with Secure-IC, having recently worked together on a flagship chiplet project, showcasing their combined expertise [5] Acquisition Strategy - Cadence is actively pursuing acquisitions to expand its business pipeline and strengthen its position in the electronic design automation software and services market [6] - Recent acquisitions include BETA CAE Systems, Invecas, Intrinsix, Pointwise, and NUMECA, aimed at enhancing various aspects of its technology and service offerings [6]