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Cadence to Boost Embedded Security Portfolio With Secure-IC, Stock Up
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Cadence Design Systems, Inc. (CDNS - Free Report) recently inked a definitive agreement to acquire Secure-IC, a premium provider of embedded security IP platforms. The buyout will enable the company to enhance its capabilities in delivering cutting-edge security solutions for complex system-on-chips (SoCs) and silicon solutions across diverse industries. Secure-IC’s expertise, proven portfolio and track record of more than 500 successful projects globally are likely to complement Cadence’s existing offerings, driving innovation and addressing the growing complexities of embedded cybersecurity in connected systems.
The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions. Cadence has stated that the acquisition will be immaterial to revenues and earnings in the short term.
Following the acquisition announcement, CDNS shares rose 3.4% and closed trading at $321.49 on Jan. 22.
How CDNS Stands to Benefit From the Deal
Based in Rennes, France, Secure-IC is renowned for its embedded security IP platforms, evaluation tools and services, including its flagship solutions — Securyzr, Laboryzr and Expertyzr. It serves top-tier players like SK Hynix Memory Solutions America, Synaptics, Silicon Labs and Faraday Technology, catering to industries such as automotive, data centers, mobile, aerospace, defense, Internet of Things, networking and consumer electronics. These markets heavily rely on robust embedded security solutions to address rising cyber threats.
Cadence’s existing portfolio, which includes silicon-proven IP such as interface IP, memory, artificial intelligence/ machine learning (AI/ML) and digital signal processing (DSP) solutions, will significantly benefit from Secure-IC’s security offerings. The combination of Cadence’s decades-long legacy in IP development with Secure-IC’s security solutions will enable robust, comprehensive, integrated cybersecurity for SoC designs. Secure-IC’s solutions will bring reciprocal synergies to Cadence’s existing offerings, such as protocol controllers, AI accelerators and other processor architectures.
As the semiconductor industry continues to evolve, Cadence’s acquisition of Secure-IC is likely to unlock new opportunities for growth and innovation. Secure-IC’s portfolio will strengthen Cadence’s ability to develop innovative solutions for next-generation SoCs and chiplet systems. This acquisition is not the first collaboration between Cadence and Secure-IC. The companies recently worked together on a flagship chiplet project, demonstrating the potential of their combined expertise.
Cadence is on an acquisition spree to expand its business pipeline and solidify its foothold in the electronic design automation software and services market. In June 2024, Cadence acquired Switzerland-based BETA CAE Systems, enhancing its Intelligent System Design strategy by expanding multi-physics system analysis and entering structural analysis. Earlier, it acquired California-based Invecas, strengthening custom chip design, advanced packaging and embedded software with a skilled engineering team in Hyderabad, India. Other notable acquisitions include Intrinsix (2023), Pointwise (2021) and NUMECA (2021).
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 9% in the past year compared with the sub-industry's growth of 14.9%.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.
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Cadence to Boost Embedded Security Portfolio With Secure-IC, Stock Up
Cadence Design Systems, Inc. (CDNS - Free Report) recently inked a definitive agreement to acquire Secure-IC, a premium provider of embedded security IP platforms. The buyout will enable the company to enhance its capabilities in delivering cutting-edge security solutions for complex system-on-chips (SoCs) and silicon solutions across diverse industries. Secure-IC’s expertise, proven portfolio and track record of more than 500 successful projects globally are likely to complement Cadence’s existing offerings, driving innovation and addressing the growing complexities of embedded cybersecurity in connected systems.
The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions. Cadence has stated that the acquisition will be immaterial to revenues and earnings in the short term.
Following the acquisition announcement, CDNS shares rose 3.4% and closed trading at $321.49 on Jan. 22.
How CDNS Stands to Benefit From the Deal
Based in Rennes, France, Secure-IC is renowned for its embedded security IP platforms, evaluation tools and services, including its flagship solutions — Securyzr, Laboryzr and Expertyzr. It serves top-tier players like SK Hynix Memory Solutions America, Synaptics, Silicon Labs and Faraday Technology, catering to industries such as automotive, data centers, mobile, aerospace, defense, Internet of Things, networking and consumer electronics. These markets heavily rely on robust embedded security solutions to address rising cyber threats.
Cadence’s existing portfolio, which includes silicon-proven IP such as interface IP, memory, artificial intelligence/ machine learning (AI/ML) and digital signal processing (DSP) solutions, will significantly benefit from Secure-IC’s security offerings. The combination of Cadence’s decades-long legacy in IP development with Secure-IC’s security solutions will enable robust, comprehensive, integrated cybersecurity for SoC designs. Secure-IC’s solutions will bring reciprocal synergies to Cadence’s existing offerings, such as protocol controllers, AI accelerators and other processor architectures.
As the semiconductor industry continues to evolve, Cadence’s acquisition of Secure-IC is likely to unlock new opportunities for growth and innovation. Secure-IC’s portfolio will strengthen Cadence’s ability to develop innovative solutions for next-generation SoCs and chiplet systems. This acquisition is not the first collaboration between Cadence and Secure-IC. The companies recently worked together on a flagship chiplet project, demonstrating the potential of their combined expertise.
Cadence is on an acquisition spree to expand its business pipeline and solidify its foothold in the electronic design automation software and services market. In June 2024, Cadence acquired Switzerland-based BETA CAE Systems, enhancing its Intelligent System Design strategy by expanding multi-physics system analysis and entering structural analysis. Earlier, it acquired California-based Invecas, strengthening custom chip design, advanced packaging and embedded software with a skilled engineering team in Hyderabad, India. Other notable acquisitions include Intrinsix (2023), Pointwise (2021) and NUMECA (2021).
CDNS’ Zacks Rank & Stock Price Performance
CDNS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 9% in the past year compared with the sub-industry's growth of 14.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) , Ubiquiti Inc. (UI - Free Report) and Qualcomm Incorporated (QCOM - Free Report) . IDCC, QCOM & UI presently carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.