SAN JOSE, Jan. 12, 2005 - Cadence Design Systems Inc. has signed a definitive agreement to acquire Verisity Ltd., a Mountain View, California-based provider of verification process automation (VPA) solutions.

Upon completion of the acquisition, Moshe Gavrielov, CEO of Verisity, will join the Cadence executive management team, and Yoav Hollander, founder and CTO, will play an integral role in setting Cadence's verification technology direction.

Under the terms of the agreement, Cadence will acquire Verisity in an all-cash transaction. Upon closing of the acquisition, which is subject to customary shareholder and government approvals, Verisity stockholders will receive $12 in cash in exchange for each outstanding share of Verisity stock.

"The global electronics industry is under unprecedented pressure to develop and bring to market innovative products as quickly as possible," said Mike Fister, president and CEO, Cadence Design Systems. "Our acquisition of this highly innovative team and successful business is consistent with Cadence's focus on enabling the world's leading electronics companies to address the demand for increasingly complex systems."