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ARM Holdings plc , the leading designer of microprocessors and associated technology and CADENCE Design Systems Inc. (CDNS - Snapshot Report) , a provider of comprehensive software and other technology, recently entered into an agreement for the sale and transfer of Cadence PANTA interface controller cores to ARM.

The aforesaid deal is expected to enhance the companies’ continuing association and boost their combined technical strength.

PANTA is a family of high-resolution display processors that were co-developed with ARM. Along with its scaling coprocessor IP cores, these processors are targeted at high-end energy-efficient mobile devices. .

ARM is the leading provider of mobile chip architecture and designs that are licensed by companies like Qualcomm (QCOM - Analyst Report) and Texas Instruments (TXN - Analyst Report) ). ARM architecture was first conceived in the 1980’s by Acorn Computers Limited that later came to be known as ARM Holdings.

ARM’s exhaustive product-line includes reduced instruction set computing (RISC) semiconductors, graphics processors, video engines, empowering software and so on.

Cadence Design Systems Incorporation is an American electronic design automation software and engineering services company. The company came into existence in 1988 due to the merger of SDA systems and ECAD Incorporation. It earns revenues by licensing its software for chip design. It also sells or leases hardware technology.

The partnership is expected to benefit both the companies. ARM management stated that the addition of Cadence’s PANTA microprocessors to its portfolio will boost its offerings as it will significantly reduce the time to market for its partners. The financial benefit to CDNS was not confirmed although considering ARM’s market position and history and Cadence’s long-standing relation with it, the company should have earned well.

ARM Holdings Plc has a Zacks Rank #2 (Buy) .