Cadence to Acquire Future Facilities, A Pioneer in Data Center Digital Twins

Rhea-AI Summary

Cadence Design Systems (CDNS) has announced the acquisition of Future Facilities, a specialist in electronics cooling analysis and energy optimization for data centers, using innovative 3D digital twin technology. This move enhances Cadence's Intelligent System Design strategy, supporting informed decisions in data center operations while reducing carbon footprints. The acquisition is expected to have minimal impact on revenue and earnings in the current year. Future Facilities’ technology aims to optimize cooling efficiency and increase uptime in data centers, benefiting key clients like Hewlett Packard Enterprise and Digital Realty.

Positive

• Acquisition enhances Cadence’s Intelligent System Design strategy.
• Future Facilities' technology improves cooling efficiency and uptime in data centers.
• The acquisition supports businesses in reducing carbon footprints.

Negative

• Transaction terms were not disclosed.
• Acquisition expected to have minimal impact on revenue and earnings this year.
• Integration of Future Facilities might pose challenges.

Engineering simulation-driven, physics-based 3D digital twins for sustainable data center design and operations

SAN JOSE, Calif.--(BUSINESS WIRE)-- Cadence Design Systems, Inc. (Nasdaq: CDNS) announced today that it has entered into an agreement to acquire Future Facilities, a leading provider of electronics cooling analysis and energy performance optimization solutions for data center design and operations using physics-based 3D digital twins. The addition of Future Facilities’ technologies and expertise supports the Cadence^® Intelligent System Design^™ strategy and enables companies to make informed business decisions about data center design, operations and lifecycle management that reduce their carbon footprint.

Future Facilities’ product portfolio includes an electronics thermal solution that augments Cadence’s leading Celsius^™ Thermal Solver, as well as innovative computational fluid dynamics (CFD) electronics cooling simulation technology that optimizes the performance and cooling efficiency of power-hungry data centers. Their technology virtualizes the data center ecosystem, creating a 3D digital twin that allows operators to predict, visualize and quantify the impact of any change in the data center prior to implementation and during operations. This allows customers to optimize business goals with facility design and operational efficiencies. Future Facilities’ proven technologies are used by leading hyperscale, enterprise data center, managed services and colocation providers, including Hewlett Packard Enterprise, Digital Realty, Equinix and Kao Data.

Data center design and operation involves a complex supply chain—construction, services, IT and electronics—including the design of efficient domain-specific chips to PCBs to the chillers for cooling. By integrating CFD techniques with a wide range of data center infrastructure management (DCIM) tools and power and cooling modules, Future Facilities simulates the impact of changes in servers on physical capacity, power infrastructure and cooling. This increases uptime and capacity utilization by predicting hotspots before they occur. The solution also improves data center power usage effectiveness (PUE) by eliminating redundant power consumption.

“The global data center market is driving the digital world and is immense with investments upwards of $200 billion a year,” said Tom Beckley, senior vice president and general manager of the Custom IC & PCB Group at Cadence. “The acquisition of Future Facilities boosts our Fidelity CFD solution with digital twin solutions, including electronics cooling and energy management that helps businesses maximize capacity, improve energy efficiency, reduce costs and mitigate critical infrastructure risk.”

Future Facilities’ 6Sigma Digital Twin simulation and optimization platform lets customers model and analyze the performance of data centers by closely monitoring airflow, heat transfer, cooling, power and capacity. The CFD simulations predict cost profiles and capacity and model improvement options. The addition of Future Facilities’ experienced team and proven technologies enables Cadence to provide comprehensive chip, package, PCB and system data center solutions that deliver efficiency gains and power savings and minimize downtime.

“Using advanced CFD brings tremendous benefits when analyzing thermal efficiencies in the data center,” said Hassan Moezzi, founder and CEO of Future Facilities. “We are excited to join the Cadence team and look forward to combining our data center and electronics technology solutions with Cadence’s expertise in Intelligent System Design to further advance performance, sustainability and energy efficiency from chip design to all elements of the data center right up to the chillers that are critical components in data center design and operations.”

The terms of the transaction were not disclosed. The acquisition is expected to be immaterial to revenue and earnings this year and subject to customary closing conditions.

About Cadence

Cadence is a pivotal leader in electronic systems design, building upon more than 30 years of computational software expertise. The company applies its underlying Intelligent System Design strategy to deliver software, hardware and IP that turn design concepts into reality. Cadence customers are the world’s most innovative companies, delivering extraordinary products from chips to boards to complete systems for the most dynamic market applications, including hyperscale computing, 5G communications, automotive, mobile, aerospace, consumer, industrial and healthcare. For eight years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at www.cadence.com.

About Future Facilities

Future Facilities is a simulation software company that believes the successful design and operation of systems, from chip to data center, lies in predicting the impact of change. Its unique methodology relies on virtual prototyping and utilizing engineering simulation to assess performance, allowing enterprises to deliver products that are efficient, reliable and scalable. Customers include design consultants, colocation providers, electronics manufacturers, investment banking enterprise companies, social media organizations, and others from the automotive, aerospace, oil and gas and government sectors. Learn more about Future Facilities at www.futurefacilities.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 Cadence’s financial outlook, product development, business strategy and plans and market trends, opportunities, positioning and the proposed acquisition of Future Facilities. These 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 these forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence’s control. For example, the market for Cadence’s products may develop more slowly than expected or than it has in the past; Cadence’s operating results may fluctuate more than expected, there may be significant fluctuations in Cadence’s results of operations and cash flows related to Cadence’s revenue recognition or otherwise; a network or data security incident that allows unauthorized access to Cadence’s network or data or Cadence’s customers’ data could damage Cadence’s reputation; Cadence and Future Facilities may fail to satisfy the closing conditions in a timely manner or at all; risks associated with tax liabilities or changes in U.S. federal tax laws or interpretations to which the proposed transaction with Future Facilities or parties thereto are subject; Cadence may fail to successfully integrate Future Facilities; Cadence may fail to realize the anticipated benefits of any combined operations with Future Facilities; Cadence may experience unanticipated costs of acquiring or integrating Future Facilities; the potential impact of announcement or consummation of the proposed acquisition on relationships with third parties, including employees, customers, partners and competitors; Cadence may be unable to retain key personnel; changes in legislation or government regulations could affect the proposed acquisition of Future Facilities or the other parties thereto; and global economic conditions could deteriorate. Further information on potential factors that could affect Cadence’s financial results or its ability to close the proposed acquisition is included in Cadence’s most recent reports on Form 10-K and Form 10-Q and Cadence’s other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent Cadence’s views as of the date of this press release and Cadence undertakes no obligation to update any forward-looking statement in this press release.

© 2022 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at www.cadence.com/go/trademarks are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

Category: Featured

View source version on businesswire.com: https://www.businesswire.com/news/home/20220711005319/en/

Cadence Newsroom

408-944-7039

newsroom@cadence.com

Source: Cadence Design Systems, Inc.

FAQ

What is the purpose of Cadence's acquisition of Future Facilities?

The acquisition aims to enhance Cadence's data center design capabilities, particularly in cooling and energy optimization.

How will the acquisition of Future Facilities affect Cadence's stock performance?

The acquisition is expected to have a minimal impact on revenue and earnings for the current year.

What technologies does Future Facilities bring to Cadence?

Future Facilities provides 3D digital twin technology for electronics cooling analysis and energy performance optimization.

Who are the key clients of Future Facilities?

Clients include major companies like Hewlett Packard Enterprise, Digital Realty, and Equinix.

What are the expected benefits from the acquisition?

The acquisition aims to improve energy efficiency, reduce costs, and enhance overall data center performance.