Cadence falls on acquisition

Investor's Business Daily

The maker of chip design software fell 3.6% after Cadence Design Systems (CDNS) said it bought privately held Tensilica for $380 mil cash. "The price paid by Cadence isn't cheap," said Needham analyst Richard Valera in a note. Cadence said the buy will slightly dilute adjusted EPS, but be accretive next year. Shares have risen 40% since June.

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