Cadence to Acquire Rocketick, Delivering Revolutionary Parallel Logic Simulation Speed-up

SAN JOSE, Calif., April 11, 2016 /PRNewswire/ -- Cadence Design Systems, Inc. (NASDAQ: CDNS) today announced that it has entered into a definitive agreement to acquire Rocketick Technologies Ltd., an Israel based pioneer and leading provider of multicore parallel simulation. Rocketick's technology accelerates Cadence Incisive® Enterprise Simulator to provide up to 6X speed-up for register-transfer-level (RTL), up to 10X speed-up for gate-level functional and up to 30X speed-up for gate-level DFT simulations using standard x86-based servers. The Rocketick solution is proven and is in use today by numerous marquee systems and semiconductor companies in the mobile, server, and graphics domains. The integration of Rocketick's technology will serve to strengthen Cadence's System Design Enablement strategy by delivering ultra-high-performance simulation to accelerate the development of complete systems with the consumer end-product in mind.

"Ensuring that SoC verification is completed on time within ever shrinking project schedules is driving the strong need to speed up the underlying logic simulation technology," said Dr. Anirudh Devgan, senior vice president and general manager of the System & Verification Group and the Digital & Signoff Group at Cadence. "Rocketick is the leading, established provider of parallel simulation technology. I look forward to welcoming the Rocketick team to Cadence as we accelerate our innovation in functional verification to solve our customers' most difficult challenges."

Rocketick's market-leading technology achieves linear speed-up by parallelizing simulation on standard x86-based multicore servers, providing automated partitioning across designs and testbenches, and the flexibility to direct simulations to server farm resources ranging from one to 64 cores. It also provides a significant accuracy advantage and enhanced visibility with four-state logic simulation, and reduces host memory footprint by 2-3X for gate-level designs. Rocketick's technology works seamlessly with the Cadence Incisive Enterprise Simulator without the need to modify designs or testbenches, eliminating ramp-up time while providing accurate results at significantly accelerated speeds.

"Rocketick and Cadence serve market-leading customers whose exploding verification challenges are testing the limits of conventional simulators," said Tomer Ben-David, CEO of Rocketick. "Rocketick's technology has been proven to deliver as much as 30X faster simulation on very challenging designs at top tier system and semiconductor companies. We are very excited to join the Cadence team and look forward to providing even more benefit to customers through the tight integration of Rocketick's core engines with Cadence's overall verification solution."

The acquisition is expected to close in the second quarter of fiscal 2016, and is not expected to have a material impact on Cadence's fiscal 2016 results of operations. Terms of the transaction were not disclosed. Rocketick is backed by investments from Intel Capital and other strategic and financial investors. Needham & Company advised Rocketick on the transaction.

About Cadence

Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software, hardware, IP and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers and research facilities around the world to serve the global electronics industry. More information about the company, its products and its services is available at www.cadence.com.

This press release contains certain forward-looking statements, including statements regarding Cadence's expected benefits of the pending acquisition of Rocketick, when Cadence expects to complete the transaction and Cadence's fiscal 2016 results of operations that are based on current expectations or beliefs, as well as 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) failure or inability to consummate the acquisition, effects of the acquisition on Cadence's financial results, the effect of regulatory requirements and the potential inability to successfully operate or integrate Rocketick's business; (ii) the effect of the announcement of the acquisition on Cadence's and Rocketick's respective businesses, including the possibility that the announcement may result in delays in customers' purchases of products or services; (iii) Cadence's ability to compete successfully in the electronic design automation product and 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 customer consolidation and the possibility that restructurings of customers and other efforts to improve operational efficiency by 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 and Rocketick do 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 on Cadence's business, including its strategic and customer relationships, and its ability to retain key employees; (xii) events that affect the reserves or settlement assumptions Cadence may take from time to time with respect to accounts receivable, taxes, 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 Securities and Exchange Commission. These include Cadence's most recent reports on Form 10-K and Form 10-Q, including Cadence's future filings.

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