AAA Cadence acquires Tensilica for $380m

Cadence acquires Tensilica for $380m

US-based chip design software manufacturer Cadence Design Systems has acquired local peer Tensilica, which is backed by Japan technology companies Fujitsu and NTT, for $380m.

Tensilica had $30m cash at the end of 2012.

Jack Guedj, president and chief executive officer of Tensilica, said: “Joining Cadence will provide a broader platform to expedite our product development strategy and customer engagement. We will have the ability to accelerate IP [intelluctual property] subsystem development and integration while providing a more extensive support network to our customers.”

In 2010 Japan-based electronics company Fujitsu has used its corporate venturing fund to make a strategic investment of undisclosed size in Tensilica. In 2009 Japan’s national phone operator NTT made a similar strategic investment  through its Docomo Capital corporate venturing fund.

Tensilica is also backed by Altera, Cisco Systems, Conexant Systems, Matsushita Electric Industries, NEC, Foundation Capital, Meritech Capital, Oak Investment Partners and Worldview Technology Partners.

The deal is subject to closing conditions such as regulatory approvals.

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