Acquisitions and Acquisition-Related Contingent Consideration

12 Months Ended

Jan. 02, 2016

Business Combinations [Abstract]

ACQUISITIONS AND ACQUISITIONS-RELATED CONTINGENT CONSIDERATION

ACQUISITIONS

In June 2014, Cadence acquired Jasper Design Automation, Inc., or Jasper, a privately held provider of formal analysis solutions based in Mountain View, California. The acquired technology complements Cadence’s existing system design and verification platforms. Total cash consideration for Jasper, after taking into account adjustments for certain costs, and cash held by Jasper at closing of $28.7 million, was $139.4 million. Cadence will also make payments to certain employees through the third quarter of fiscal 2017 subject to continued employment and other conditions.

Cadence also completed two other business combinations during fiscal 2014 for total cash consideration of $27.5 million, after taking into account cash acquired of $2.1 million.

In April, 2013, Cadence acquired Tensilica, Inc., or Tensilica, a privately held provider of configurable dataplane processing units. Total cash consideration for Tensilica, after taking into account adjustments for certain costs and cash held by Tensilica at closing of $26.3 million, was $319.3 million. Cadence will also make payments to certain employees through the second quarter of fiscal 2016 subject to continued employment and other conditions.

Acquisition-related Transaction Costs

Transaction costs associated with acquisitions were $0.7 million, $3.7 million and $8.7 million during fiscal 2015, 2014 and 2013, respectively. These costs consist of professional fees and administrative costs and were expensed as incurred in Cadence’s consolidated income statements.