U.S. Markets closed

Cadence Forms Strategic Alliance With National Instruments

Zacks Equity Research

Cadence Design Systems, Inc. CDNS entered into a strategic alliance with National Instruments Corporation NATI to augment electronic system innovation. Through this collaboration, the companies plan to develop an integrated design to test flow, leverage reusable data as well as test IP from electronics design and verification to validation and production test for electronic system and semiconductor companies.

The alliance extends the association between Cadence and National Instruments that began in 2018. The collaboration was aimed toward semiconductor development and testing of next-generation wireless, automotive as well as mobile integrated circuits (ICs) and modules.

In addition to the strategic alliance, Cadence also announced that it will acquire AWR Corporation, which is a wholly-owned subsidiary of National Instruments. Cadence is likely to pay nearly $160 million in cash at closing of the deal. Also 110 employees from AWR are expected to join Cadence.

Details of the Deal

The collaboration between Cadence and National Instruments is likely to provide consumers with a seamless flow of data from pre-silicon mixed-signal design as well as verification to post-silicon validation and test. It is also likely to enable re-use of mixed-signal testbenches and stimulus from pre-silicon design verification to post-silicon validation and production test.

The agreement is anticipated to augment technology, methodology and intellectual property of the parties. This will likely streamline the process for electronics development. Moreover, the deal will combine National Instruments’ strength in semiconductor validation and test systems with Cadence’s technological capabilities in analog mixed-signal and radio-frequency (RF) design.

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

 

Additionally, the acquisition of AWR is likely to augment Cadence’s capabilities in RF. Markedly, AWR pioneers in high-frequency RF EDA software technology. The integration of AWR with Cadence is expected to be closely linked with the NI LabVIEW and PXI modular instrumentation systems and semiconductor data platform.

Markedly, the AWR software technology improves design and product development cycle of systems by reducing the time taken to go from concept to manufacturing.  Hence, through the inclusion of AWR, Cadence’s RF solutions are likely to become more optimized.

Wrapping Up

We expect that the deal between Cadence and National Instruments is likely to optimize and speed up flows for analog/mixed-signal as well as RF ICs and modules. This is likely to augment the overall process of design-to-test methodology and meet consumers’ needs on a timely basis.

We note that Cadence is keen on investing in verification and digital design products. This has enabled the company to launch products that address the ever-growing needs of electronics and semiconductor companies. In fact, new products like Protium X1, Spectre X, Smart JasperGold and Tensilica Vision Q7 as well as Xcelium have been doing well. Notably, Cadence’s Tensilica offerings are being utilized in Microsoft’s MSFT mixed-reality headset, HoloLens 2. Also, chip-making giant NVIDIA NVDA is implementing Protium X1, which is a noteworthy win.

Apart from these, increasing investments in emerging trends like IoT, AR/VR and autonomous vehicle sub-systems present significant growth opportunities to the company.

Currently, Cadence carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>