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PADS To Buy ACT marlborough, ma. -- PADS Software pressed forward with plans to reposition itself within the interconnect software space last week when the company acquired Advance CAM Technologies (ACT), a provider of PC-based CAM tools for the interconnect market, for an undisclosed amount. Under terms of the deal, ACT will become a wholly-owned subsidiary of PADS, with development and sales functions remaining in Los Gatos, Calif., and will continue to develop, promote and distribute its products independently from PADS' core business. The acquisition increases PADS employee count by only 12; however, it adds "about 20-25 percent to our revenue, 20-25 percent to operating income before tax," says Richard Almeida, PADS VP of marketing. ACT represents the second major acquisition of PADS, according to Mr. Almeida. Previous to ACT, PADS acquired Hyperlynx, another piece of PADS new focus toward interconnect software, in 1997. Hyperlynx was a supplier of signal integrity and EMC analysis software. PADS defines interconnect software as automation software that aids in the design, verification, and manufacture of interconnect substrates. According to the company, design engineers need software that addresses the new challenges of high density designs, high speed chip issues and the need to understand the impact of design on the entire creative process including the downstream processes of fabrication, assembly and test. The company's actual courtship of ACT was 12 months in the making, although the company has been reselling ACT's products since 1994. ACT will strengthen PADS PCB portfolio two-fold: The company furthers PADS design tool portfolio for interconnect, and also gives PADS a foothold in the PCB fabrication space, competing with Wise and Valor, an area that the company did not previously participate in. "Hyperlnyx, PowerBGA and this basically demonstrates another step in that strategy," says Mr. Almeida, who adds that more steps are to come, though its too early to say what the next step will be. PADS believes that design for fabrication tools are critical for companies to remain competitive in today's electronic design market. This acquisition allows PADS to integrate important design for fabrication validation routines that can be used early in the layout process, while providing a toolset for their customers from front-end design to manufacturing. While PADS contends that it has the broadest interconnect tool portfolio, "(we) still have our work ahead of us in terms of offering a broad supply of interconnect tools," says Mr. Almeida. "We think we have one of the broadest and most complete today, but there is still more room to provide software solutions that haven't been thought of yet." For instance, Mr. Almeida, says virtual prototyping is an area the company is eyeing. Although it is not mission critical today, the industry is defining stages for the technology. Virtual prototyping involves technology selection, design partitioning, partition reuse, pre-placement and pre-routing among other aspects. Another area where more will come from is signal analysis. Currently PADS boasts some software in this space through Hyperlynx in terms of signal integrity, emissions and crosstalk, its LineSim line; however, timing, thermal and power analysis remain opportunities for enhancement. At the end of the process remains a need for computer integrated manufacturing as well. PADS will keep ACT's management team intact with all ACT employees continuing to report to Richard Nedbal, president of ACT. Mr. Nedbal will report to Richard Finigan, president/CEO of PADS. |