Subsequent Event

3 Months Ended

Apr. 02, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

On April 8, 2016, Cadence entered into a definitive agreement to acquire Rocketick Technologies Ltd., or Rocketick, an Israel-based privately held developer and provider of multicore parallel simulation software used in system-on-chip verification. A trust for the benefit of the children of Lip-Bu Tan, Cadence’s president, chief executive officer and director, owns less than 2% of Rocketick, and Mr. Tan and his wife serve as co-trustees of the trust and disclaim pecuniary and economic interest in the trust. The Board of Directors of Cadence reviewed the transaction and concluded that it was in the best interests of Cadence to proceed with such transaction. Mr. Tan recused himself from the Board of Directors’ discussion of the valuation of Rocketick and on whether to proceed with the transaction. A financial advisor provided a fairness opinion to Cadence in connection with the transaction. The completion of the transaction is subject to certain conditions, including regulatory approval.