Subsequent Event

6 Months Ended

Jul. 02, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENTS

On July 14, 2022, Cadence acquired all of the outstanding equity of FFG Holdings Limited (“Future Facilities”), a provider of electronics cooling analysis and energy performance optimization solutions for data center design and operations using physics-based 3D digital twins, for total cash consideration of approximately $110 million. The addition of Future Facilities’ technologies and expertise supports Cadence’s Intelligent System Design™ strategy and broadens its System Design and Analysis technology portfolio with the addition of solutions that enable companies to make informed business decisions about data center design, operations and lifecycle management that reduce their carbon footprint. The consideration paid, adjusted for working capital and other customary adjustments, will be allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. Due to the timing of this acquisition, the initial accounting is incomplete. As such, Cadence is not able to disclose certain information relating to this acquisition, including the preliminary fair value of assets acquired and liabilities assumed. Cadence expects to complete the initial accounting for its acquisition of Future Facilities during the third quarter of fiscal 2022. The acquisition of Future Facilities was funded through cash on hand.

On July 22, 2022, Cadence entered into a definitive agreement to acquire OpenEye Scientific Software, Inc. (“OpenEye”), a leading provider of computational molecular modeling and simulation software used by pharmaceutical and biotech companies for drug discovery. The addition of OpenEye’s technologies and experienced team with its deep scientific expertise will accelerate Cadence’s Intelligent System Design strategy through leveraging its computational software expertise to apply proven algorithmic, simulation and solver advances to the Life Sciences end market. The aggregate consideration will be approximately $500 million, subject to customary adjustments and holdbacks outlined in the agreement. The acquisition of OpenEye is expected to close during the third quarter of fiscal 2022, subject to regulatory review and customary closing conditions, and is expected to be funded through a combination of cash on hand and borrowings.