SAN JOSE -- Cadence today extended its position in the fast-growing system-on-chip market, snatching up Denali Software for $315 million in cash.

The deal, which has been approved by both companies' boards, will close in the current quarter.

Denali had revenue of $43 million for the year ended March 2010, and is expected to have approximately $45 million in cash at closing. 

In a statement, Cadence said the move expands its solution portfolio in system component modeling and IP integration.

"Denali's strengths in memory models, design IP and verification IP accelerate the execution of Cadence's recently announced EDA360 vision, creating new opportunities for the company," said Cadence president and chief executive Lip-Bu Tan.

Cadence will pay cash for Denali and the transaction is expected to be accretive to its fiscal 2011.

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