Cadence to Acquire Arm Artisan Foundation IP Business

Transaction will augment Cadence's expanding design IP portfolio and accelerate growth opportunities

Cadence (NASDAQ:CDNS) today announced that it has entered into a definitive agreement with Arm (NASDAQ:ARM) to acquire Arm's Artisan foundation IP business, consisting of standard cell libraries, memory compilers, and general-purpose I/Os (GPIOs) optimized for advanced process nodes at the leading foundries. The transaction will augment Cadence's expanding design IP offerings, anchored by a leading portfolio of protocol and interface IP, memory interface IP, SerDes IP at the most advanced nodes, and embedded security IP from the pending Secure-IC acquisition.

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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