Cadence Acquires Small Chip Design Firm to Boost Custom Silicon Services
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Cadence acquired a small engineering team, Invecas, to boost its custom silicon design services. The deal is small and won't significantly impact revenue or earnings.
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The acquisition contrasts with Synopsys, which may acquire Ansys in a mega merger between two large companies.
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Cadence's strategy targets non-semiconductor companies needing custom chips to power advanced software and AI. Invecas brings industry experience.
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Cadence has a history of successfully integrating small acquisitions to drive profitable growth over time.
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The author believes Cadence stock, trading at a high valuation, is best bought through dollar-cost averaging despite an effective long-term strategy.