Cadence Design Systems (CDNS) has struck a deal to purchase Arm's Artisan foundation IP business. This acquisition involves standard cell libraries, memory compilers, and general-purpose I/Os that are optimized for cutting-edge process nodes at major foundries. The transaction will be executed through an asset purchase agreement, which will include a concurrent technology license agreement upon closing.
As part of the acquisition, Cadence will integrate an experienced engineering team from Arm, aiming to enhance the development of both existing and future IP products. This move is seen as a strategic expansion of Cadence’s offerings in the IP market.
The deal is anticipated to finalize in the third quarter of 2025, pending regulatory approval and other standard closing conditions. Despite the scale of the acquisition, it is projected to have minimal impact on Cadence’s revenue and earnings for the current year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for ARM Holdings PLC (ARM, Financial) is $156.15 with a high estimate of $225.00 and a low estimate of $75.34. The average target implies an upside of 59.36% from the current price of $97.99. More detailed estimate data can be found on the ARM Holdings PLC (ARM) Forecast page.
Based on the consensus recommendation from 37 brokerage firms, ARM Holdings PLC's (ARM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
