We have to come up with a clever name for the combination of Cadence and Mentor. Chris Edwards coined* Cadentor, which is actually a pretty decent name. Going the other way, Mendence is too close to "menace" or "mendacity", so I suppose the PR types won't buy that. (When AMD bought ATI, the irreverent press dubbed it DAAMIT.)
Cadence's unfriendly bid to acquire Mentor Graphics is red meat for the EDA blogoshpere! (Be sure to click on that link. It's a fascinating one-page summary of dozens of EDA news & opinion sources.)
I've read many thoughtful commentaries on the possibility. Frankly, most of them are unfavorable on the deal. Some of the substantial analyses:
- Can you guess Gabe's take on Cadence's arrogance?
- Chris Edwards initial take.
- Later, Chris has a very pretty picture of how the companies' main products line up at Overlaps 'r' us.
- Ron Wilson has a possible explanation (conspiracy theory?) for Cadence's motivations.
Two of the more curious quips I read:
- Customers don't want the EDA vendor to provide a complete front to back flow. They want best of breed tools, and for third party companies to link them together. I agree that we need best of breed tools, but not that we need third party companies to hook them together. Are there examples of companies that make a good business of that? That sounds like an ASIC company, and they aren't exactly thriving. There also used to be a company called Reshape that had their own physical design flow on top of commercial tools. But they ended up going out of business.
Cadence acquiring Mentor could present a big challenge to Synopsys.
Well, I don't know.
When two established giants come together, what technological advance does that enable?
Not much that I can see.
A bigger challenge is when a giant acquires a startup with hot new technology: think Cadence with Get2Chip, or potentially Mentor with Sierra Design Automation.
One successful big acquisition was Synopsys acquiring Avant! --
I don't know what went on under the covers, but the products were complementary and continued to be successful after the deal was done.
Of course, there may be "business synergies" -- cutting common administrative and infrastructure costs, and having a bigger menu for "all you can eat" deals. But it's kind of sad if one of the biggest business events in EDA just comes down to that.
*Update: Gabe Moretti lays claim to coining "Cadentor". I'll let Chris and Gabe hash it out.