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SAN JOSE - Cadence Design Systems, Inc. (NASDAQ:CDNS) has completed its acquisition of Secure-IC, a provider of embedded security IP, solutions, and evaluation tools, the company announced Thursday. The acquisition comes as Cadence maintains a strong financial position with a market capitalization of $91.45 billion and impressive revenue growth of 22.29% over the last twelve months.
The acquisition aims to strengthen Cadence’s position in addressing growing demand for embedded security solutions across multiple sectors including automotive, data center, aerospace and defense, mobile, IoT, and consumer electronics markets.
By integrating Secure-IC’s cybersecurity capabilities with its own expertise in IP and subsystem design, Cadence plans to deliver comprehensive system solutions that help customers meet increasing security and regulatory requirements while accelerating time to market.
Financial terms of the transaction were not disclosed, though Cadence stated in its press release that the acquisition is expected to be immaterial to the company’s revenue and earnings this year. This aligns with Cadence’s current financial profile, which includes $5.09 billion in revenue and impressive gross profit margins of 85.57%, according to InvestingPro data.
Cadence, which describes itself as a market leader in AI and digital twins, provides computational software for engineering design from silicon to systems. The company’s solutions are used by semiconductor and systems companies to design next-generation products across various markets.
The acquisition announcement follows Cadence’s recognition earlier this year by the Wall Street Journal as one of the world’s top 100 best-managed companies, according to the press release statement.
In other recent news, Cadence Design Systems reported strong third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.93 compared to the forecasted $1.79. The company achieved a revenue of $1.34 billion, exceeding both Rosenblatt’s forecast of $1,320.9 million and consensus estimates of $1,322.8 million, representing approximately 10% year-over-year growth. Cadence also provided fourth-quarter guidance that is approximately $15 million ahead of consensus estimates. KeyBanc Capital Markets reiterated its Overweight rating on Cadence, highlighting a record backlog and maintaining a price target of $405.00. Wolfe Research raised its price target to $385 from $370, noting the company’s strong performance across geographies and product segments, with a backlog now at $7 billion. Meanwhile, Rosenblatt increased its price target to $335 from $320, while maintaining a Neutral rating. These developments underline Cadence’s robust financial health and strategic positioning in the market.
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