- Cadence (CDNS, Financial) to acquire Arm's Artisan foundation IP business in a strategic portfolio expansion.
- Transaction entails acquiring standard cell libraries, memory compilers, and general-purpose I/Os.
- Deal expected to close in Q3 2025, with immaterial impact on revenue and earnings this year.
Cadence Design Systems, Inc. (CDNS) has entered into a definitive agreement to acquire the Artisan foundation IP business from Arm. This acquisition will include standard cell libraries, memory compilers, and general-purpose I/Os optimized for advanced process nodes. The purchase is expected to enhance Cadence's design IP portfolio significantly, complementing its current offerings in protocols, interfaces, memory, SerDes, and embedded security IP.
The transaction involves an asset purchase agreement along with a concurrent technology license agreement. In addition, Cadence will bring on board a skilled engineering team from Arm, which is anticipated to accelerate the development of IP products. The deal is expected to conclude in the third quarter of 2025, subject to regulatory approvals and customary closing conditions. It is important to note that the acquisition is projected to be immaterial to Cadence's revenue and earnings in the current year.
By entering the foundation IP market, Cadence aims to open new growth opportunities and strengthen its position in System on Chip (SoC) design optimization. This move is strategically aligned with industry trends where expanding IP portfolios is crucial for offering comprehensive solutions. For Arm, this transaction allows them to concentrate on their core processor IP business while ensuring ongoing support for Arm-based design implementations. The acquisition underscores Cadence's commitment to delivering enhanced value to its customers by improving power, performance, and area (PPA) capabilities.
