Cadence Design Systems to Acquire Secure-IC, Bolstering Embedded Security IP Portfolio

Cadence to acquire Secure-IC, bolstering IP security By Investing.com

SAN JOSE, Calif. - Cadence Design (NASDAQ:CDNS) Systems, Inc. (NASDAQ: CDNS), an $83.8 billion market cap technology leader with impressive gross profit margins of 87.8%, has announced its definitive agreement to acquire Secure-IC, a prominent provider of embedded security IP platforms. The transaction is set to enhance Cadence's IP portfolio, addressing the growing need for integrated security in electronic systems across various industries. According to InvestingPro analysis, Cadence maintains a strong financial health score, positioning it well for strategic acquisitions. This strategic move aims to complement Cadence's existing silicon-proven IP offerings, which include interface, memory, AI/ML, and DSP solutions. Secure-IC's expertise in embedded security will be integrated into Cadence's offerings, providing robust security solutions for SoCs and chiplets used in consumer electronics, automotive, data centers, and more. Boyd Phelps, senior vice president and general manager of the Silicon Solutions Group at Cadence, emphasized the importance of embedded security in the design of semiconductors and electronic systems. He stated that the acquisition is a testament to Cadence's commitment to providing comprehensive system solutions and delivering value to customers in the AI-enabled SoC market. Secure-IC, with a history of 15 years in the cybersecurity field, brings to the table a portfolio of security solutions that are multi-certified and comply with global cybersecurity standards. Hassan Triqui, co-founder and CEO of Secure-IC, expressed confidence that the merger with Cadence will create a synergy to accelerate innovation and scale globally. The customer base of Secure-IC spans several industries, providing Cadence with additional go-to-market opportunities. The acquisition is expected to close in the first half of 2025, pending regulatory approval and customary closing conditions. It is anticipated to have an immaterial impact on Cadence's revenue and earnings for the current year. Cadence is a leader in electronic systems design with over 30 years of experience in computational software. The company has been recognized for its workplace culture, consistently ranking among Fortune magazine's 100 Best Companies to Work For over the past decade. The integration of Secure-IC's technology with Cadence's solutions will address the complexities of embedded cybersecurity and support the delivery of secure, connected systems. This acquisition is a strategic step for Cadence to further solidify its position as a partner in SoC design, providing end-to-end security solutions that are adaptable to a variety of customer applications. The information in this article is based on a press release statement from Cadence Design Systems, Inc. For deeper insights into Cadence's financial health, valuation metrics, and growth potential, including 12+ additional ProTips and comprehensive analysis, visit InvestingPro, where you'll find detailed Pro Research Reports that transform complex Wall Street data into actionable intelligence. In other recent news, Cadence Design Systems has been the focus of numerous analyst notes and financial updates. Redburn-Atlantic and Loop Capital both initiated coverage of Cadence with a Buy rating, setting price targets of $350 and $360 respectively. KeyBanc Capital Markets also expressed a positive outlook for Cadence, highlighting the company's potential growth in the Electronic Design Automation sector. Cadence's financial performance has been impressive, reporting a 19% increase in total revenue for the third quarter of 2024, reaching $1.215 billion. This growth was largely attributed to the company's AI-driven solutions and design enablement offerings. The company also updated its full-year earnings per share (EPS) outlook, expecting fourth-quarter revenue to be between $1.325 billion and $1.365 billion, and its 2024 revenue forecast to $4.61 billion to $4.65 billion, with GAAP EPS projected between $3.70 and $3.76. In terms of board movements, Cadence announced the appointment of Moshe Gavrielov to its board of directors. Gavrielov brings a wealth of experience from his current roles on the boards of NXP Semiconductors (NASDAQ:NXPI) N.V. and Taiwan Semiconductor Manufacturing Company Ltd. These recent developments highlight Cadence's strong position in the market and its potential for further growth.

Cadence to Acquire Secure-IC, a Leader in Embedded Security IP

Cadence (Nasdaq: CDNS) today announced it has entered into a definitive agreement to acquire Secure-IC, a leading embedded security IP platform provider. The addition of Secure-IC's talent and highly complementary, proven portfolio of embedded security IP, security solutions, security evaluation tools and services will augment Cadence's rapidly expanding portfolio of leading-edge, silicon-proven IP, including interface, memory, AI/ML and DSP solutions. "In our increasingly interconnected world, every semiconductor, chiplet and electronic system will require embedded security. Whether for consumer, data center, automotive, drone, robotics, or aerospace and defense applications, security is a foundational element of any design," said Boyd Phelps, senior vice president and general manager of the Silicon Solutions Group at Cadence. "We continue to invest in our comprehensive IP and design services portfolio to provide more complete system solutions for our customers. The anticipated addition of Secure-IC's proven embedded security IP and solutions is yet another example of our commitment to being our customers' SoC design partner and delivering optimal value as they navigate the complexities of bringing AI-enabled SoCs and disaggregated designs to market faster and with greater impact." "Over the past 15 years, Secure-IC has been dedicated to safeguarding the digital future with cutting-edge technologies, multi-certified and compliant to worldwide cybersecurity regulations, that protect assets from manufacturing phases to mission mode and enable data protection at rest, in transmission and in computation. By joining Cadence, we will secure the sustainability and operational strength necessary to continue our mission while creating a powerful synergy that accelerates innovation. Together, we are poised to scale globally, deliver enhanced value to our customers and pioneer the next generation of embedded cybersecurity solutions for complex silicon systems and chiplets following the closing of the transaction," said Hassan Triqui, co-founder and CEO of Secure-IC. Secure-IC's customer base includes top-tier customers such as SK Hynix Memory Solutions America, Synaptics, Silicon Labs and Faraday Technology, which span key verticals worldwide, including automotive, data center, mobile, aerospace and defense, mobile, networking, IoT and consumer electronics. This will offer reciprocal synergistic go-to-market opportunities with Cadence's existing IP offerings, from protocol controllers and AI accelerators to supporting customers utilizing various processor architectures. Cadence technologies, coupled with Secure-IC's security solutions, will be fully equipped to address the growing complexities of embedded cybersecurity, ensuring robust solutions for the ever-evolving challenges of connected systems. Secure-IC has consistently delivered comprehensive security solutions to partners and customers across industries, completing over 500 successful projects worldwide. This acquisition will combine Cadence's decades of expertise in IP and subsystem design with Secure-IC's leading embedded cybersecurity solutions, ensuring Cadence is better able to meet the needs of its customers in the evolving world of SoCs. For Secure-IC's customers, this alignment will enhance global reach, ensuring long-term stability and accelerating roadmap execution while maintaining the highest standards of support and quality. The integration of Secure-IC's complementary solutions (Securyzr, Laboryzr and Expertyzr) into Cadence's portfolio will empower Cadence to accelerate innovation, broaden its capabilities and strengthen support for diverse industries and businesses. Cadence solutions will feature comprehensive end-to-end integrated security, easily provisionable, deployable and versatile to customer use cases. Secure-IC's addition to Cadence expertise will be especially impactful in the context of chiplet systems and complex silicon solutions, building on the companies' proven success together in the flagship chiplet project recently unveiled by Cadence. Headquartered in Rennes, France, Secure-IC has eight additional offices and research centers worldwide. The transaction is expected to close in the first half of 2025, subject to receipt of regulatory approvals and other customary closing conditions. The acquisition is expected to be immaterial to revenue and earnings this year. About Cadence Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world's most innovative companies, delivering extraordinary electronic products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For 10 years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at cadence.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding Cadence's proposed acquisition of Secure-IC, the anticipated timeline and closing of the proposed transaction, Secure-IC's and Cadence's talent, technologies and product offerings, business strategy, plans and opportunities, industry and market trends including TAM estimates and the expected benefits and impact of the proposed transaction and combined business on Cadence's growth. Forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control. For example, the markets for Secure-IC's or Cadence's products and services may develop more slowly than expected or than they have in the past; operating results and cash flows may fluctuate more than expected; Secure-IC or Cadence may fail to satisfy the closing conditions, including obtaining required regulatory approvals, in a timely manner or at all; Cadence may fail to successfully acquire and integrate Secure-IC; Cadence may fail to realize the anticipated benefits of the proposed acquisition; Cadence may incur unanticipated costs or other liabilities in connection with acquiring or integrating Secure-IC; the potential impact of the announcement or consummation of the proposed acquisition on relationships with third parties, including employees, customers, partners and competitors; Cadence may be unable to motivate and retain key personnel; changes in or failure to comply with legislation or government regulations could affect the closing of the proposed transaction or post-closing operations and results of operations; and macroeconomic and geopolitical conditions could deteriorate. Further information on potential factors that could affect Cadence's ability to successfully acquire and integrate Secure-IC or otherwise realize the anticipated benefits of the proposed acquisition is included in Cadence's most recent report on Form 10-K and its other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent Cadence's views as of the date of this press release, and Cadence disclaims any obligation to update any of them publicly in light of new information or future events. © 2025 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.