Cadence to Acquire Arm Artisan Foundation IP Business
Cadence (CDNS) has announced a definitive agreement to acquire Arm's Artisan foundation IP business, which includes standard cell libraries, memory compilers, and general-purpose I/Os optimized for advanced process nodes. The acquisition will enhance Cadence's design IP portfolio, complementing its existing protocol, interface, memory interface, SerDes IP, and embedded security IP offerings from the pending Secure-IC acquisition.
The transaction involves an asset purchase agreement with a concurrent technology license agreement. Cadence will acquire a skilled engineering team to accelerate IP product development. The deal is expected to close in Q3 2025, subject to regulatory approvals and closing conditions, and is anticipated to be immaterial to revenue and earnings this year.
Cadence (CDNS) ha annunciato un accordo definitivo per acquisire il business IP Artisan di Arm, che include librerie di celle standard, compilatori di memoria e I/O generici ottimizzati per nodi di processo avanzati. Questa acquisizione arricchirà il portafoglio di IP di design di Cadence, integrando le sue attuali offerte di IP per protocolli, interfacce, interfacce di memoria, SerDes e sicurezza embedded derivanti dalla prossima acquisizione di Secure-IC.
L’operazione prevede un accordo di acquisto di asset insieme a un contratto di licenza tecnologica parallelo. Cadence acquisirà un team di ingegneri esperti per accelerare lo sviluppo dei prodotti IP. La chiusura dell’accordo è prevista per il terzo trimestre 2025, subordinata alle approvazioni regolamentari e alle condizioni di chiusura, e si prevede che avrà un impatto trascurabile su ricavi e utili di quest’anno.
Cadence (CDNS) ha anunciado un acuerdo definitivo para adquirir el negocio de IP Artisan de Arm, que incluye bibliotecas de celdas estándar, compiladores de memoria y E/S de propósito general optimizados para nodos de proceso avanzados. La adquisición mejorará la cartera de IP de diseño de Cadence, complementando sus ofertas actuales de IP para protocolos, interfaces, interfaces de memoria, SerDes y seguridad embebida provenientes de la próxima adquisición de Secure-IC.
La transacción implica un acuerdo de compra de activos junto con un contrato de licencia tecnológica simultáneo. Cadence adquirirá un equipo de ingeniería capacitado para acelerar el desarrollo de productos IP. Se espera que el acuerdo se cierre en el tercer trimestre de 2025, sujeto a aprobaciones regulatorias y condiciones de cierre, y se anticipa que tendrá un impacto insignificante en los ingresos y ganancias de este año.
Cadence (CDNS)는 Arm의 Artisan 파운드리 IP 사업을 인수하는 최종 계약을 발표했습니다. 이 사업에는 표준 셀 라이브러리, 메모리 컴파일러, 첨단 공정 노드에 최적화된 범용 I/O가 포함됩니다. 이번 인수로 Cadence의 설계 IP 포트폴리오가 강화되며, 보류 중인 Secure-IC 인수에서 제공하는 프로토콜, 인터페이스, 메모리 인터페이스, SerDes IP 및 임베디드 보안 IP와 시너지를 낼 것입니다.
이번 거래는 자산 매입 계약과 동시에 기술 라이선스 계약을 포함합니다. Cadence는 숙련된 엔지니어 팀을 확보하여 IP 제품 개발을 가속화할 예정입니다. 거래는 2025년 3분기에 마무리될 예정이며, 규제 승인과 마감 조건을 충족해야 하며, 올해 매출과 수익에는 미미한 영향이 있을 것으로 예상됩니다.
Cadence (CDNS) a annoncé un accord définitif pour acquérir l’activité IP Artisan Foundation d’Arm, qui comprend des bibliothèques de cellules standard, des compilateurs de mémoire et des E/S polyvalents optimisés pour les technologies de processus avancées. Cette acquisition renforcera le portefeuille d’IP de conception de Cadence, complétant ses offres actuelles en IP de protocole, interface, interface mémoire, SerDes et sécurité embarquée issues de l’acquisition en cours de Secure-IC.
La transaction comprend un accord d’achat d’actifs accompagné d’un contrat de licence technologique simultané. Cadence intégrera une équipe d’ingénieurs qualifiés pour accélérer le développement des produits IP. La clôture de l’opération est prévue pour le troisième trimestre 2025, sous réserve des approbations réglementaires et des conditions de clôture, et devrait avoir un impact négligeable sur le chiffre d’affaires et les bénéfices de cette année.
Cadence (CDNS) hat eine endgültige Vereinbarung zur Übernahme des Artisan Foundation IP-Geschäfts von Arm bekannt gegeben, das Standardzellenbibliotheken, Speichercompiler und universelle I/Os umfasst, die für fortschrittliche Prozessknoten optimiert sind. Die Übernahme wird das Design-IP-Portfolio von Cadence erweitern und die bestehenden Angebote für Protokolle, Schnittstellen, Speicherinterfaces, SerDes-IP und eingebettete Sicherheits-IP aus der geplanten Secure-IC-Übernahme ergänzen.
Die Transaktion beinhaltet einen Asset-Kaufvertrag sowie eine gleichzeitige Technologie-Lizenzvereinbarung. Cadence wird ein erfahrenes Ingenieurteam übernehmen, um die Entwicklung von IP-Produkten zu beschleunigen. Der Abschluss der Transaktion wird für das dritte Quartal 2025 erwartet, vorbehaltlich behördlicher Genehmigungen und Abschlussbedingungen, und wird voraussichtlich keine wesentlichen Auswirkungen auf Umsatz und Ergebnis in diesem Jahr haben.
- Expansion into foundation IP market creates new growth opportunities
- Acquisition of experienced engineering team to accelerate IP development
- Strategic enhancement of design IP portfolio
- Strengthens Cadence's position in SoC design optimization
- No immediate material financial impact expected
- Long completion timeline (Q3 2025)
- Subject to regulatory approval risks
Insights
Cadence's acquisition of Arm's Artisan foundation IP business represents a strategic portfolio expansion rather than an immediate financial catalyst. The foundation IP (standard cell libraries, memory compilers, and GPIOs) complements Cadence's existing protocol, interface, memory, SerDes, and security IP offerings, creating a more comprehensive solution for chipmakers.
This move positions Cadence to capture additional SoC design share by offering customers a more complete IP stack, potentially increasing their stickiness within customer design flows. The acquisition of Arm's engineering talent is particularly valuable in the current semiconductor talent market, providing Cadence with experienced developers who understand the nuances of optimizing IP for advanced nodes.
While explicitly stated to be immaterial to revenue and earnings this year, this acquisition follows industry consolidation trends where EDA vendors are expanding their IP portfolios to offer more comprehensive solutions. The foundation IP business provides Cadence entry into a new market segment with established foundry partnerships and customer relationships built over Artisan's 25-year history.
For Arm, this appears to be a strategic divestiture allowing them to focus on their core processor IP business while ensuring the ecosystem maintains access to the physical IP needed for implementing Arm-based designs. The transaction structure—an asset purchase with a technology licensing agreement—suggests Arm will retain some rights while transferring operational control to Cadence.
This transaction demonstrates Cadence's disciplined M&A approach focused on technology-driven acquisitions that enhance their competitive positioning rather than immediate financial returns. The deal's structure as an asset purchase with concurrent technology licensing suggests a carefully constructed agreement that protects both parties' interests while transferring operational control to Cadence.
The explicit statement that the acquisition will be immaterial to revenue and earnings this year indicates modest near-term financial impact, likely due to both the timing (closing expected in Q3 2025) and the relative size of the acquired business. However, the strategic value lies in expanding Cadence's total addressable market and creating cross-selling opportunities across their customer base.
From a business model perspective, foundation IP typically generates recurring revenue through licensing agreements, aligning well with Cadence's existing subscription-heavy model. The addition of complementary IP should improve Cadence's ability to secure broader design wins and potentially increase average revenue per customer.
For investors, this represents a long-term growth initiative rather than a catalyst for immediate financial performance. The true value lies in how Cadence leverages this acquisition to enhance their competitive position in the EDA and IP markets, particularly as the industry moves toward more modular chiplet-based designs where foundation IP plays a crucial role in ensuring compatibility and performance.
Transaction will augment Cadence’s expanding design IP portfolio and accelerate growth opportunities
By increasing its footprint in SoC designs, Cadence is reinforcing its commitment to continuously accelerate customers’ time to market and to optimize their cost, power and performance on the world’s leading foundry processes. Cadence will acquire the Arm Artisan foundation IP business through an asset purchase agreement with a concurrent technology license agreement, to be signed at closing and subject to any existing rights. As part of the transaction, Cadence will acquire a highly talented and experienced engineering team that is well respected in the industry and can help accelerate development of both related and new IP products.
“During its 25-year history, Arm’s Artisan IP has established a strong presence and reputation in the global ecosystem of foundries and SoC partners. With the expected addition of the Artisan IP business and team, Cadence will enter the foundation IP market, enabling us to capitalize on new growth opportunities,” said Boyd Phelps, senior vice president and general manager of the Silicon Solutions Group at Cadence. “In doing so, we will gain key technology and expertise to augment our design services and chiplet offerings, enabling us to deliver on our comprehensive IP strategy and provide greater value to our customers. By leveraging the full Cadence stack of IP, libraries, tools, and services, we strive to improve PPA while growing this foundation IP business.”
“We are committed to ensuring that the foundational physical IP needed to deploy Arm technology across all markets continues to be available to the ecosystem,” said Kevork Kechichian, executive vice president, Solutions Engineering, Arm. “The Artisan brand is well established and we believe this technology will continue to play a significant role in the semiconductor industry in the future, and that Cadence is an ideal partner to take it forward.”
The transaction is anticipated to close in the third quarter of 2025, subject to receipt of regulatory approvals and other customary closing conditions. The acquisition is expected to be immaterial to revenue and earnings this year.
About Cadence
Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design™ strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies. Cadence® solutions offer limitless opportunities—learn more at www.cadence.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding pending transactions, the anticipated timeline and closing of the pending transactions, talent, technologies and product offerings, business strategy, plans and opportunities, industry and market trends and the expected benefits and impact of pending transactions and combined businesses. Forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside the applicable parties’ control. For example, the markets for relevant products and services may develop more slowly than expected or than they have in the past; operating results and cash flows may fluctuate more than expected; closing conditions, including required regulatory approvals, may not be obtained in a timely manner or at all; Cadence may fail to successfully acquire and integrate the acquired assets and licensed technology; the applicable parties may fail to realize the anticipated benefits of the proposed transactions; the applicable parties may incur unanticipated costs or other liabilities in connection with pending transactions; the potential impact of the announcement or consummation of pending transactions on relationships with third parties, including employees, customers, partners and competitors; the applicable parties may be unable to motivate and retain key personnel; changes in or failure to comply with legislation or government regulations could affect the closing of pending transactions or post-closing operations and results of operations; and macroeconomic and geopolitical conditions could deteriorate. Further information on potential factors that could affect pending transactions or otherwise impact the anticipated benefits of pending and recent transactions is included in and the applicable parties’ most recent annual report on Form 10-K or Form F-20, as applicable, and their other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent Arm’s and Cadence’s views as of the date of this press release, and Arm and Cadence disclaims any obligation to update any of them publicly in light of new information or future events.
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FAQ
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