Subject: "Positioning" consultant says Rajeev wants to sell to Cadence
This morning one of my readers sent me a link to a blog where an unknown (unknown to me, at least) "strategy" consultant had written:
"I sat down with Magma's CEO Rajeev Madhavan recently, and concluded that Rajeev has reconciled with the fact that he needs to get acquired soon, and that Cadence would be his preferred new home for Magma. Rajeev says that he has kept Magma focused on R&D, and is the only company amongst the EDA majors to be able to do innovation internally. I agree with this claim, and it is true that Magma has a very strong presence in the convergence device segment with market leaders like Qualcomm (QCOM), Broadcom (BRCM) and TI (TXI) as key customers. Cadence would benefit from the capability of internal R&D and also the progress that Magma has made from a product point of view in the last year."
Second. Although Magma has some nice products they are not known for their management quality and have been losing market share. So this is not in any way beneficial to Cadence which simply needs to focus on fundamentals rather than adding the disruption of another needless & non-acretive acquisition.
They play if it does happen would be with Mentor.
But anyone who actually invests in EDA should just burn their money and be done with it because it will not be a good investment especially now when there are so many good alternatives.