( ESNUG 517 Item 5 ) -------------------------------------------- [01/17/13]
Subject: Yet 64% of EDA VENDORS see the SNPS-EVE merger as BAD or SAD News
SHOW ME THE MONEY: Again a split on seeing this making Synopsys yet a bigger
monopoly in EDA with less competition (18%) vs. now Cadence/Mentor will have
more competition in emulation (11%).
Q: After weeks of denial, Synopsys today offically announced
it bought EVE and its ZeBu emulator. Rumor is Aart paid
around $150 million for the deal.
For your company, this Synopsys-EVE merger is (choose one)
GOOD news, BAD news, NEUTRAL news because (say why):
GOOD: ########## 21%
BAD: ################################ 64%
NEUTRAL: ######## 16%
Here's the specific reasons "why" the 38 EDA vendors gave to explain their
reaction to the SNPS-EVE merger.
less emulation competition: ######### 18%%
more emulation competition: ##### 11%
don't care - not our niche: #### 8%
means better integration: ## 5%
EVE and SNPS are the same: # 3%
EVE needed money/help: ######## 16%
I hate lawsuits: #### 8%
EVE sold to SNPS too cheaply: #################### 39%
A chunk of EDA vendors thought EVE needed business help (16%) and some even
noted the Menter-EVE lawsuit problem (8%).
But easily the biggest reaction (39&) by the EDA vendors was anger/sadness
at EVE management/investors for selling to Aart for a multiple under 3X.
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Bad news to Cadence in short to mid term. EVE now will be in a
stronger position to compete against Cadence -- not technology
wise, but pricing and tool suite wise. Long term, the best
technology wins, and this acquisition won't have much effect.
Also it seems SNPS got it cheap if the reported $150 million is
indeed what they paid.
---- ---- ---- ---- ---- ---- ----
$%*&#! $150 M for $60 M in EVE revenue? No wonder VC's hate EDA!
---- ---- ---- ---- ---- ---- ----
BAD. Luc and Lauro don't know how to negotiate a merger. WTF?
They got a multiple under 3X ????
---- ---- ---- ---- ---- ---- ----
BAD for EVE. They sold too cheap!
---- ---- ---- ---- ---- ---- ----
BAD. $150 M for EVE is a early Christmas for Aart. He'll make
a killing.
---- ---- ---- ---- ---- ---- ----
SAD. Lauro worked 10 long years for this miniscule return?
---- ---- ---- ---- ---- ---- ----
BAD. I heard that SNPS threatened EVE's French investors with
Mentor lawsuit FUD, scaring them into selling for no margin.
---- ---- ---- ---- ---- ---- ----
BAD. Aart took them to the cleaners. Bad for EDA VC investments.
---- ---- ---- ---- ---- ---- ----
Bad news for the industry. Bought for a song.
---- ---- ---- ---- ---- ---- ----
We are a venture funded private company. If your rumor of a
$150 M price tag is correct, that's not a very good multiple for
a company the size of EVE. It's a bad "comp" for the rest of us.
---- ---- ---- ---- ---- ---- ----
$150 M? Good for Synopsys, bad for EVE.
---- ---- ---- ---- ---- ---- ----
Isn't that kinda cheap considering they had ~$60 M run rate?
---- ---- ---- ---- ---- ---- ----
Bad news: It's a buyer's market for EDA start-ups and nobody but
perhaps the founders are making a lot of money.
---- ---- ---- ---- ---- ---- ----
Holy snappin' electrons, Batman! Thanks for the heads up.
---- ---- ---- ---- ---- ---- ----
I wonder what Cadence must be thinking...
---- ---- ---- ---- ---- ---- ----
I'd say it's neutral, since it's not adding or removing any products
in the market. It's also not hugely surprising. Anyone familiar with
EVE has kind of expected this for awhile. I'm guessing that the
purchase is acknowledging the SNPS purchase of Symplicity and Hardi
didn't really give them something to compete in the space.
---- ---- ---- ---- ---- ---- ----
It might be somewhat positive news for EVE customers, in that Synopsys
can now start bundling SpringSoft Siloti with the emulator. Debug was
never one of EVE's strong points, which is why they always positioned
it as a hardware-software codesign platform.
---- ---- ---- ---- ---- ---- ----
Bad news... as usual with any of these M&As. More shrinkage in an
already stagnant growth industry. Next is Atrenta then BDA then ???
---- ---- ---- ---- ---- ---- ----
I think this is bad news for Cadence Palladium and Mentor Veloce as
the Synopsys package offer gets stronger. It would shrink emulation
market.
---- ---- ---- ---- ---- ---- ----
BAD news since SNPS is getting bigger and bigger and they will start
controlling the market -- even though CDNS/MENT are there for EVE
equivalent tools but still overall verification methodology will see
the influence.
---- ---- ---- ---- ---- ---- ----
This is good as we already work with Synopsys as part of our
ecosystem and this grows the value of our Synopsys relationship.
---- ---- ---- ---- ---- ---- ----
GOOD news.
Since two players (competitors) will be merged into one :)
---- ---- ---- ---- ---- ---- ----
GOOD news, makes SNPS more competitive with CDNS.
---- ---- ---- ---- ---- ---- ----
Bad news for design teams. For EVE, the emulator business is a live
or die paradigm. EVE had reached the maximum size that allowed it to
deploy commercially. What will being in Synopsys add to this?
---- ---- ---- ---- ---- ---- ----
Neutral I think. EVE is in third place in the emulation biz. SNPS
has nothing, they're desperate, had to do something. I don't see
how they'll really do anything noteworthy with it.
---- ---- ---- ---- ---- ---- ----
Good news for Synopsys: it will be even more difficult for a customer
to remove SNPS from their list of suppliers.
---- ---- ---- ---- ---- ---- ----
It's a compliment to Mentor and Cadence that Aart's finally recognized
the importance of hardware emulation.
---- ---- ---- ---- ---- ---- ----
BAD - a monopoly is not good for competition or innovation.
---- ---- ---- ---- ---- ---- ----
Neutral, ZeBu's been out of steam for some time. Technology inferior
to Veloce and Palladium in performance and capacity.
---- ---- ---- ---- ---- ---- ----
Synopsys seems to be investing far more in verification than Mentor or
Cadence. It would nice to see the others step it up as well.
---- ---- ---- ---- ---- ---- ----
BAD news. I am a Cadence employee.
---- ---- ---- ---- ---- ---- ----
NEUTRAL
On the one hand, this was one piece missing from Synopsys FV offering.
Synopsys' cash could help infuse help to an expensive solution that is
hard to maintain within a single solution company.
On the other hand, Synopsys has a long history of mis-managing
emulation solutions.
---- ---- ---- ---- ---- ---- ----
Neutral, because we are not in emulation market.
---- ---- ---- ---- ---- ---- ----
GOOD news as it locks in INTEL for Aart and would be a good compete
against Cadence Palladium.
---- ---- ---- ---- ---- ---- ----
Bad. Makes the "all you can eat" arm twist even tighter, so more
start-up lockout. "You can get it all from us. That start-up is
creating 10x performance? We'll give you something like that for
shell-game free."
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GOOD. EVE have good products, good company #3 in the emulation
market but, in fact, too small to play against Cadence or Mentor.
With the SNPS-EVE merger, this is changing the game.
---- ---- ---- ---- ---- ---- ----
BAD because MENT-EVE lawsuit turned into SNPS-MENT lawsuit and it's
not the same cash capabilities... talk about the biter bitten...
---- ---- ---- ---- ---- ---- ----
While EVE only had two patents in the simulation/emulations space,
they have been able to build a business despite a litigious Mentor.
Synopsys will now give Mentor a taste of what EVE went through.
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