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Cadence (CDNS) Set to Buy Future Facilities, Terms Undisclosed

·4 min read

Cadence Design Systems CDNS is set to acquire a simulation software company  — Future Facilities — for an undisclosed sum.

Future Facilities provides electronics cooling analysis and energy performance optimization solutions for data center design and operations using 3D digital twins’ technology. The company has a strong clientele based across hyperscale, enterprise data center, managed services and colocation providers.

Future Facilities’ electronics thermal solution enhances Cadence’s Celsius Thermal Solver. It also had a computational fluid dynamics (CFD) electronics cooling simulation technology platform. Future Facilities combines CFD with various data center infrastructure management tools and cooling modules to replicate the impact of changes in servers on physical capacity, power infrastructure and cooling.

The combination of solutions offered by the companies will aid users in creating a 3D digital twin model that will improve prediction, visualization, and quantification of the impact of changes made to change the data center before application and during operations. This will enhance business goals with facility design and operational efficacy, stated Cadence.

The increasing global demand for digital twin solutions augurs well for Cadence. According to a report from Grand View Research, the worldwide digital twin technology market is expected to witness a CAGR of 39.1% from 2022 to 2030.

Cadence Design Systems, Inc. Price and Consensus

 

Cadence Design Systems, Inc. Price and Consensus
Cadence Design Systems, Inc. Price and Consensus

Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote

 

The addition of Future Facilities will aid Cadence in improving the company’s Fidelity CFD solution with digital twin solutions, including electronics cooling and energy management solutions. Using these enhanced solutions, users can improve capacity and energy efficiency, streamline cost structure and lower infrastructure risk, further added Cadence.

Based in San Jose, CA, Cadence offers products and tools that help customers to design electronic products. Cadence’s core electronic design automation (EDA) software and services enable engineers to develop different types of ICs.

Cadence’s performance is driven by strength across all segments owing to healthy demand for the company’s diversified product portfolio. Acceleration in chip design activity and increasing system design complexity drive demand for Cadence’s system design and verification solutions among semiconductor companies.

Frequent product launches are expected to help the company sustain top-line growth. In 2021, Cadence introduced 13 new products, including Cadence Helium Virtual and Hybrid Studio and Allegro X.

Synergies from the Integrand and AWR buyouts and the recent acquisitions of Pointwise and NUMECA are contributing to the top line.

Zacks Rank & Stocks to Consider

CDNS carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader technology sector worth consideration are Synopsys SNPS, Aspen Technology AZPN and Broadcom AVGO. All stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 4% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 2.2%. Shares of AVGO have lost 0.2% of their value in the past year.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.47 per share, rising 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have increased 13.4% in the past year.

The Zacks Consensus Estimate for Aspen’s fiscal 2022 earnings is pegged at $5.50 per share, rising 1.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.4%.

Aspen’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 4.1%. Shares of AZPN have grown 31.9% in the past year.


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