SAN JOSE, Calif.--(BUSINESS WIRE)--Cadence Design Systems, Inc. (Nasdaq: CDNS) today announced it has completed its previously announced acquisition of BETA CAE Systems International AG, a leading provider of multi-domain, engineering simulation solutions. BETA CAE accelerates Cadence’s Intelligent System Design™ strategy by expanding its multiphysics system analysis suite with highly complementary products, enabling Cadence to offer a more comprehensive portfolio to its customers. BETA CAE has a very strong footprint in the automotive vertical sector and at leading companies in the aerospace, industrial and healthcare industries.
BETA CAE has annual revenue of about $90 million, and Cadence continues to expect BETA CAE to contribute about $40 million to its 2024 revenue. Cadence still expects the transaction to be approximately 12 cents dilutive to its 2024 earnings per share and become accretive in 2025, both on a non-GAAP basis.
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 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 10 years in a row, Fortune magazine has named Cadence one of the 100 Best Companies to Work For. Learn more at 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 talent, technologies and product offerings, business strategy, plans and opportunities, industry and market trends including TAM estimates, the expected benefits and impact of the transaction and combined business on Cadence’s growth in the multiphysics space, and Cadence’s financial outlook, including expected revenue contribution and earnings impact, which assume Cadence will use free cash flow generated by its pre-existing operations for debt repayment and share repurchases. 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 Cadence’s control. For example, the markets for BETA CAE’s or Cadence’s 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; risks associated with tax liabilities or changes in applicable tax laws or interpretations to which the transaction or parties thereto are subject; Cadence may fail to successfully integrate BETA CAE; Cadence may fail to realize the anticipated benefits of the acquisition; Cadence may incur unanticipated costs or other liabilities in connection with acquiring or integrating BETA CAE; Cadence may not repay debt or make share repurchases as anticipated, including as a result of insufficient free cash flow or use of cash for other purposes; the potential impact of the consummation of the acquisition on relationships with third parties, including employees, customers, partners and competitors; Cadence may be unable to motivate and retain key personnel; changes in or failure to comply with legislation or government regulations could affect post-closing operations and results of operations; and macroeconomic and geopolitical conditions could deteriorate. Further information on potential factors that could affect Cadence’s ability to successfully integrate BETA CAE or otherwise realize the anticipated benefits of the acquisition is included in Cadence’s most recent report on Form 10-K and its 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 disclaims any obligation to update any of them publicly in light of new information or future events.
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