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Cadence to Expand High-Speed Communications IP Portfolio with Acquisition of nusemi inc

SAN JOSE, Calif., 01 Nov 2017

Cadence Design Systems, Inc. (NASDAQ:CDNS) today announced that it has acquired nusemi inc, a company focused on the development of ultra-high-speed Serializer/Deserializer (SerDes) communications IP.

SerDes solutions enable high-speed communications between chips, backplane and long-haul optical interconnect by converting between parallel data and extremely high-speed serial data streams with improved signal reliability. Exploding bandwidth requirements for cloud and hyperscale datacenter connectivity are driving the need for increasingly faster SerDes solutions.

nusemi, a technology-leading startup with industry veteran leaders, is developing next-generation SerDes technologies that will complement Cadence’s existing SerDes solutions. These high-speed SerDes solutions will provide significant value to the hyperscale datacenter, edge computing, networking, and telecom segments by enabling very high bandwidth and efficient solutions with reduced power consumption and cost.

IP is a critical element of Cadence’s System Design Enablement strategy, with a focus on enterprise (HPC, datacenter, networking/edge computing, and storage), mobility, and automotive applications at the most advanced FinFET nodes. nusemi’s ultra-high-speed SerDes technology is highly complementary to Cadence’s strengths in memory, storage, interconnect and digital signal processing (DSP) IP.

“The demands of cloud services and high-performance computing require continued innovation to deliver faster, denser and longer reach connectivity at ever-increasing speeds,” said Babu Mandava, senior vice president and general manager of the IP Group at Cadence. “The nusemi team brings strong SerDes expertise, and their innovative architecture is well-positioned to meet those needs. We welcome nusemi’s talented team to Cadence.”

“nusemi is focused on providing a high-speed connectivity solution at new levels of power efficiency to enable the next generation of hyperscale data centers,” said Stefanos Sidiropoulos, co-founder and CEO of nusemi inc. “The synergy between the Cadence IP strategy and nusemi’s technology plus the combination of our talented teams will accelerate the delivery of our high-speed SerDes offering at the most advanced process nodes. We are excited to join Cadence to further our original vision."

The transaction is not expected to have a material impact on Cadence’s fiscal 2017 operational results. Terms of the transaction were not disclosed.

About Cadence

Cadence enables electronic systems and semiconductor companies to create the innovative end products that are transforming the way people live, work and play. Cadence® software, hardware and semiconductor IP are used by customers to deliver products to market faster. The company’s System Design Enablement strategy helps customers develop differentiated products—from chips to boards to systems—in mobile, consumer, cloud datacenter, automotive, aerospace, IoT, industrial and other market segments. Cadence is listed as one of Fortune Magazine's 100 Best Companies to Work For. Learn more at www.cadence.com.

This press release contains forward-looking statements that are based on current expectations or beliefs and preliminary assumptions about future events that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements are subject to numerous risks, uncertainties and other factors, many of which are outside Cadence's control, including, among others: (i) effects of the acquisition on Cadence's financial results and the potential inability to successfully operate or integrate nusemi's business; (ii) the effect of the acquisition on Cadence's business; (iii) Cadence's ability to compete successfully in the electronic design automation product and the commercial electronic design and methodology services industries; (iv) the success of Cadence's efforts to improve operational efficiency and growth; (v) the mix of products and services sold and the timing of significant orders for Cadence's products; (vi) change in customer demands, including those resulting from consolidation among Cadence’s customers and the possibility that the restructurings and other efforts to improve operational efficiency of Cadence’s customers could result in delays in customers' purchases of products and services; (vii) economic and industry conditions in regions in which Cadence does business; (viii) fluctuations in rates of exchange between the U.S. dollar and the currencies of other countries in which Cadence does business; (ix) capital expenditure requirements, legislative or regulatory requirements, interest rates and Cadence's ability to access capital and debt markets; (x) the acquisition of other companies or technologies or the failure to successfully integrate and operate these companies or technologies Cadence acquires, including the potential inability to retain customers, key employees or vendors; (xi) the effects of Cadence's efforts to improve operational efficiency in its business, including strategic, customer and supplier relationships, and its ability to retain key employees; (xii) events that affect cash flow, liquidity, reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation or other matters; and (xiii) the effects of any litigation or other proceedings to which Cadence is or may become a party. Cadence undertakes no obligation to update any forward-looking statement in this press release.

For a detailed discussion of these and other cautionary statements related to Cadence's business, please refer to Cadence's filings with the U.S. Securities and Exchange Commission, which include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.

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