* Says to buy Denali for $315 mln in cash
* Deal slightly dilutive to 2H of 2010, to add to 2011 EPS
* To finance deal with available cash
* Denali’s 2009 rev $43 mln
* Shares up 2 pct (Adds conference call details)
May 13 (Reuters) - Chip-design software maker Cadence Design Systems Inc (CDNS.O) said it would acquire privately held peer Denali Software Inc for $315 million in cash, a deal that will add to its fiscal 2011 earnings.
The transaction will be about 1 cent to 2 cents dilutive in the second half of 2010, Cadence said in a conference call with analysts.
The acquisition is a push towards the company’s new growth strategy, EDA360. This involves designing chips and hardware in tandem to better run applications-driven systems.
Denali posted revenue of $43 million for the year ended March, 2010 and its operating margin for 2009 was above 30 percent, Cadence officials said in the conference call.
Cadence said it intends to finance the transaction with available cash. At the end of the first quarter ended April 3, the company had cash and cash equivalents of $619.3 million.
Denali is expected to have about $45 million in cash at closing, Cadence said. [ID:nWNAB0158]
The transaction is expected to close in the second quarter, after which Cadence will update its 2010 outlook, it said. Shares of San Jose, California-based Cadence were trading up 2.3 percent at $7.03 in morning trade on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Mike Miller and Prem Udayabhanu)