Cadence Design Systems Inc, San Jose, California now has definitive agreement to acquire Gateway Design Automation Corp, Lowell, Massachusetts in a deal that will combine Cadence chip design software with Gateway’s simulation software: Cadence will exchange about 4m new shares for those of Gateway on a 0.97 for one basis, and assume existing Gateway stock options estimated at 1m shares at the same exchange rate, valuing the acquisition at about $18.5m; the two hope to to be married by the end of December; Cadence has about 750 employees and Gateway has 150.
