Cadence to Acquire NUMECA to Expand System Analysis Capabilities With Computational Fluid Dynamics

Rhea-AI Summary

Cadence Design Systems, Inc. (Nasdaq: CDNS) has agreed to acquire NUMECA International, a leader in computational fluid dynamics (CFD) solutions. This acquisition enhances Cadence's Intelligent System Design strategy and expands its system analysis portfolio in a $1.6 billion total addressable market (TAM) for CFD, supporting industries such as aerospace and automotive. The deal is expected to close in Q1 2021 and will be immaterial to revenue and earnings for the current year. Key benefits include improved multi-physics engineering solutions and enhanced design capabilities.

Positive

• Enhances system analysis portfolio with NUMECA's CFD technologies.
• Access to a $1.6 billion total addressable market (TAM) in CFD solutions.
• Expected synergies from integrating NUMECA's technology into existing products.

Negative

• Transaction details undisclosed, limiting financial transparency.
• Integration challenges may arise post-acquisition.

Cadence Design Systems, Inc. (Nasdaq: CDNS) announced today that it has entered into a definitive agreement to acquire NUMECA International, a leader in computational fluid dynamics (CFD), mesh generation, multi-physics simulation and optimization. The addition of NUMECA’s technologies and talent supports the Cadence^® Intelligent System Design^™ strategy and broadens its system analysis portfolio with CFD solutions, servicing a fast-moving market segment where accuracy, reliability and predictability are paramount concerns for high-fidelity modeling.

NUMECA’s technology addresses the high-growth CFD market segment, which has an estimated $1.6B TAM. The acquisition builds on the momentum of recent Cadence system innovation developments with the Clarity^™ 3D Solver for electromagnetic (EM) simulation, the Clarity 3D Transient Solver for finite difference time domain (FDTD) system-level EM simulation and the Celsius^™ Thermal Solver for electrical-thermal co-simulation product introductions. NUMECA’s technology will also contribute to Cadence best-in-class system analysis solutions for integrated circuits (ICs), electronic subsystems and full system designs.

NUMECA’s core competency in CFD encompasses many industries and applications including aerospace, automotive, industrial and marine, with its proven technologies adopted by industry leaders such as NASA, ArianeGroup, Honda and Ford.

“Cadence continues to be at the forefront of innovation, addressing real-world system design challenges by leveraging our deep computational software expertise,” said Dr. Anirudh Devgan, president of Cadence. “The acquisition of NUMECA’s proven CFD technology and talented team complements Cadence’s finite element analysis and other system innovation technologies and is another successful step that will advance our customers’ ability to design the exciting products of tomorrow.”

“Next-generation products and systems require comprehensive multi-physics engineering solutions encompassing IP, semiconductors, IC packaging, modules, boards, complex mechanical structures and more,” said Tom Beckley, senior vice president and general manager of the Custom IC & PCB Group at Cadence. “With the addition of NUMECA’s technology to the Cadence portfolio, we are broadening our system analysis capabilities and integrated design solutions, addressing critical customer challenges in areas such as internal and external flows, acoustics, heat transfer, fluid-structure interaction and optimization.”

“Since our inception, NUMECA’s stated mission has been to deliver dedicated CFD solutions to predict product and system performance focused on the highest levels of reliability and safety for our industry-leading customers’ most challenging designs,” said Dr. Charles Hirsch, president of NUMECA. “We are very excited to join Cadence, as we share a common culture of innovation in computational software. Together, we will continue covering the industrial challenges of our current market, while providing creative system solutions to address the needs of next-generation products.”

The terms of the transaction were not disclosed. The acquisition is expected to be immaterial to revenue and earnings this year, and close in the first quarter of 2021, subject to customary closing conditions.

About Cadence

Cadence is a pivotal leader in electronic 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 electronic products from chips to boards to systems for the most dynamic market applications, including consumer, hyperscale computing, 5G communications, automotive, mobile, aerospace, industrial and healthcare. For six years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at cadence.com.

About NUMECA

NUMECA is recognized as a worldwide provider of innovative computational fluid dynamics (CFD) software, optimization and heat transfer technologies. NUMECA software is used by designers, naval architects, research engineers and product developers in aerospace, marine, automotive, energy and power generation, allowing them to reach superior product quality and performance at a reduced engineering cost. Learn more at numeca.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the expected benefits to Cadence, its products and its customers from the acquisition and the expected timing of the closing, that are based on current expectations and preliminary assumptions 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 a number of risks, uncertainties and other factors, many of which are outside Cadence’s control, including the effects of the acquisition on Cadence’s financial results and business, the ability to successfully operate or integrate NUMECA into Cadence, the ability to retain and integrate NUMECA employees into Cadence, the changes in customer demands and markets and other risk factors set forth in Cadence’s most recent reports on Form 10-K and Form 10-Q. Cadence undertakes no obligation to update any forward-looking statement in this press release.

© 2021 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.

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FAQ

What is the purpose of Cadence's acquisition of NUMECA?

The acquisition aims to enhance Cadence's system analysis capabilities by integrating NUMECA's advanced CFD technologies, addressing multi-physics engineering challenges.

When is the expected closing date for the NUMECA acquisition?

The acquisition is expected to close in the first quarter of 2021, subject to customary closing conditions.

How will the NUMECA acquisition impact Cadence's revenue?

The acquisition is expected to be immaterial to Cadence's revenue and earnings for the current year.

What industries will benefit from NUMECA's technologies?

NUMECA's technologies will benefit industries such as aerospace, automotive, marine, and energy by providing advanced CFD solutions.

What is the estimated market size for CFD solutions?

The computational fluid dynamics (CFD) market has an estimated total addressable market (TAM) of $1.6 billion.